Advanced financial accounting - Lecture 8: Non-Profit organizations

Advanced financial accounting - Lecture 8: Non-Profit organizations. The main topics covered in this chapter include: statement of affairs; working (office equipment); owner’s equity business organizations; capital fund non profit organizations; cost of goods sold;... Please refer to the lecture for details!

Accounting

FIN­611  

Main Ahmad Farhan 

Lecture­8 Non­Profit organizations 

Club ground       50,000

Sports equipment       15,500

Furniture        2,000

Investments      12,000   Subscription due        2,000

Opening balance         3,800

     85,300

Less Liabilities 

Subscription received in advance       500  

Capital fund     84,800

Sports Equipment  

Date  Particulars  Amount  Date  Particulars  Amount 

1 Jan 

2007 

1 Sep 

2007

Opening balance 

Addition During the year  

15,500 10,000

31  Dec 2007

31  Dec 2007

Depreciation   Balance 

3,767 21,733

25,500 25,500

Opening balance 15,500   Add Addition 10,000

25,500 Less Depreciation    3,767

Net book value  21,733

­­­­ Club  Balance sheet  31­12­2007

Assets  Amount  Capital fund & 

Liabilities  Amount 

Club building 

Sports equipment

Furniture 

Investments

Subscription due

Cash  

50,000 21,733 1,900 12,000 300 7,200

Capital fund Subscription  received in  advance 

92,233 900

93,133 93,133

Furniture 

Particulars  Amount  Particulars  Amount 

Opening balance  2,000 Depreciation  

Balance 

100 1,900

2,000 2,000

Owner’s Equity  Business Organizations 

Add Fresh capital xxx

Capital Fund  Non Profit Organizations

Opening capital fund  xxx

Add Capital receipts during the year  xxx Closing capital fund  xxx

Capital fund 

Less Capital receipts       800 Closing capital fund 92,233

Question  (Solution in PDF file)  

Receipts  Amount  Payment  Amount 

Cash in hand & at bank on 

April 1, 2007

Member’s subscription 

Entrance fee

Restaurant fee

Games competition receipts

Dues to secretary for petty 

expenses   

4,740

29,720 3,200 56,800 13,640 80

Wages­Outdoor staff Restaurant purchases  Rent­18 months (June 

30, 2008) Rates  Secretary salary  Lighting, Cleaning & 

sanitary service  Competition prizes Printing, postage & 

sundries 

13,380 50,400 7,500

2,200 3,120 7,700

4,000 6,000

The following summary of the Cash Book has been prepared by the 

Treasure of a club. 

Question 

On April 2007, the club assets were: Furniture and Equipment

 Rs. 48,000; Restaurant stocks Rs. 2,600; Stock of prizes Rs. 800

 Rs 5,200 was owing for supplies to the restaurant

On March 31, 2008 the restaurant Stocks were Rs. 3,000 an prizes

On hand were Rs. 500 while the club owed Rs. 5,600 for restaurant  supplies

It was also found that member’s subscription un paid on March 31,

2008, amounted to Rs. 1,000 and that the figure of Rs. 29,720

shown in cash book included Rs. 700 in respect of previous year  and Rs. 400 paid in advance for the following year.        

Supplies  

Closing due   5,600 Supplies expenses  50,400

Supplies  

Cash paid    50,400 Less Opening due     5,200 Add Closing due    5,600 Supplies expenses  50,800

       Purchases  50,800 Add Opening stock   2,600 Less Closing stock    3,000

  Cost of goods sold  50,400

Less Cost of Goods Sold

 Opening stock      2,600

Add Purchases          50,800

 Less Closing stock   3,000   

50,400 6,400