Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Accounting for non profit organisations Example

  • This is a solution of the question shown here
  • We have also looked at accounting for non-profits here this is a solution to an example on the topic
  • It is a continuation of the answer that started here
  • First we need to ascertain the Accumulated Funds balance at the beginning of the ear

Statement of Affairs as at 1 January 20×8

Clubhouse buildings12 500
Snack bar stock800
Cash at bank200

13 500

Accumulated Fund

13 500

Lake Chivero Statement of Affairs  as at 31 December 20×8

Non-current Assets
Clubhouse buildings20 500
Games and Equipment2 000
Less Depreciation


1 600

22 100
Current Assets
Snack bar stock900
Cash at Bank


1 600
Current Liabilities
Prepaid subscription


1 220

17 820

Financed by:
Accumulated Fund (A)13 500
Surplus for the period

4 320

17 820


  • Subscriptions for 20×9 are essentially a prepaid income which is a current liability
  • Expenditure of $8 000 towards extension should be treated as capital expenditure

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