ZIMSEC O Level Principles of Accounting: 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 buildings | 12 500 | |
| Snack bar stock | 800 | |
| Cash at bank | 200 | |
13 500 |
||
| Accumulated Fund | 13 500 |
|
Lake Chivero Statement of Affairs as at 31 December 20×8
| $ | $ | |
| Non-current Assets | ||
| Clubhouse buildings | 20 500 | |
| Games and Equipment | 2 000 | |
| Less Depreciation | (400) | |
1 600 |
||
| 22 100 | ||
| Current Assets | ||
| Snack bar stock | 900 | |
| Cash at Bank | 700 | |
| 1 600 | ||
| Current Liabilities | ||
| Prepaid subscription | 380 | |
| 1 220 | ||
17 820 |
||
| Financed by: | ||
| Accumulated Fund (A) | 13 500 | |
| Surplus for the period | 4 320 | |
17 820 |
NB:
- 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
To access more topics go to the Principles of Accounts Notes.
