ZIMSEC O Level Principles of Accounting: Accounting for non profit organisations Example
- This is the first part of the question posted here
- We have already looked at accounting for non-profit organisations here
The Receipts and Payments Account
| Receipts | Amount($) | Receipts and Payments Account | Payments | Amount($) |
| Balance b/d | 200 | Games equipment | 2 000 | |
| 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 | |
| Balance c/d | 700 | |||
17 050 | 17 050 |
Chivero Angling Club Snack Bar Income Statement
| $ | $ | |
| Sales | 6 000 | |
| Less Cost of Sales | ||
| Opening Stock | 800 | |
| Add Purchases | 3 750 | |
| 4 550 | ||
| Less Closing Stock | (900) | |
(3 650) |
||
| Gross Profit | 2 350 | |
| Less Expenses | ||
| Snack Bar Expenses | (600) | |
| Net Profit (A) | 1 750 |
Chivero Angling Club Income and Expenditure Account for the year ended 31 December 20×8
| $ | $ | |
| Income | ||
| Subscriptions | 3 500 | |
| Visitor's fees | 650 | |
| Competition fees | 820 | |
| Snack Bar Profit (A) | 1 750 |
|
| 6 720 | ||
| Less Expenditure | ||
| Rent and Rates | 1 500 | |
| Secretarial Expenses | 240 | |
| Loan interest | 260 | |
| Depreciation on games and equipment | 400 | |
| (2 400) | ||
| Surplus of income over expenditure | 4 320 |
NB:
- Snack bar related expenditure is already included in the calculation for bar profit and should therefore not appear in the income and expenditure account
- Gaming equipment is depreciated at 20% i.e. 20% of $2 000 since there is no depreciation cited for buildings we shouldn’t depreciate buildings
- The extension of buildings is of a capital nature and thus does not feature in the Income and Expenditure Account
To see the Statement of Financial Position for Chivero Angling Club and its related workings please click here.
To access more topics go to the Principles of Accounts Notes.
