ZIMSEC O Level Principles of Accounting: Accounting for non profit organisations Example
- Having looked at how non-profits record and report their transactions
- It is time to look at a worked example
On 1 January 20X8 The Lake Chivero Angling Club had the following assets:
- Cash at bank $200
- Snack bar stocks $800
- Club house buildings $12,500
During the year to 31 December 20X8 the Club received and paid the following amounts:
| Receipts | Amount($) | Receipts and Payments | Payments | Amount($) |
| Subscriptions 20x8 | 3 500 | Rent and Rates | 1 500 | |
| Subscriptions 20x9 | 380 | Extension to club house | 8 000 | |
| Snack bar income | 6 000 | Snack bar purchases | 3 750 | |
| Visitor's fees | 650 | Secretarial expenses | 240 | |
| Loan from bank | 5 500 | Interest on load | 260 | |
| Competition fees | 820 | Snack bar expenses | 600 | |
| Games equipment | 2 000 | |||
Notes:
- The snack bar stock on 31 December 20X8 was $900
- The games equipment should be depreciated by 20%
Required:
- The receipts and payments account for the year
- The Income Statement for the year ended 31 December 20×8 for Chivero Angling Club’s Snack Bar
- The Income and Expenditure Account for Chivero Angling Club for the year ended 31 December 20×8
- The Statement of Financial Position for Chivero as at 31 December 20×8
- The first part of the solution to this question can be found here
- The second part of the solution can be found here
To access more topics go to the Principles of Accounts Notes.
