Chapter 34 - Non-trading Organisation by keara

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									Chapter 34 - Non-trading Organisation
1. Non-trading organisations include clubs, associations and other non-profit making organisation (e.g. charities) do not have the trading and profit and loss account. 2. Profit Making Firm 1. Cash Book 2. Trading and Profit and Loss Account Non-profit Making Firm 1. Receipts and Payment Account 2. Income and Expenditure account (Sometimes, there is a Trading / Bar trading / Refreshment account) 3. Net Profit 4. Net Loss 5. Capital 3. Surplus (of Income Over Expenditure) 4. Deficit (Excess of Expenditure over Income) 5. Accumulated Fund

3. Balance Sheet and adjustments e.g. depreciation, provision for bad debts, accrued / prepaid expenses, accrued / prepaid income (specifically and usually called subscription in arrears / in advance) remain the same. Examples 1. Receipts and Payments Accounts for the year ended 31 August 1999 $ Subscriptions 400 Equipment Stationery Balance c/f 400 === Account and (b) the Balance Sheet. (a) Income and Expenditure Account for the year ended 31 August 1999 $ Sports Day Expenses Stationery Surplus === (b) Assets : Equipment Cash === === Balance Sheet as at 31 August 1999 $ Accumulated Fund : Surplus ==== ==== *The above double entries and the Trial Balance are just for illustration but NOT required for the question. $ === Equipment Sports Day Expenses Stationery Subscriptions Cash Subscriptions $ Trial Balance as at 31 August 1999 Dr. $ Cr. $ $ 200 Cash === Stationery Cash === Subscriptions I&E === Cash === I&E === 70 50 400 === Sports Day Expenses 80 Cash === Sports Day Expenses I&E === Equipment Bal. c/f ===

REQUIRED : Prepare (a) the Income and Expenditure

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Receipts and Payments Accounts for the year ended 31 August 2000 $ $ Equipment Stationery Balance c/f 430 === 100 30 150 430 ===

(a)

Income and Expenditure Account for the year ended 31 August 2000 $ Sports Day Expenses ( Stationery Surplus === ) Subscriptions ( )

$ Balance b/f Subscriptions 50 380 Sports Day Expenses 150

=== Additional information (1) Balance of equipment at 1.9.1999 was $200 (2) Subscriptions in arrears at 31.8.2000 was $20 (3) Sports day expenses accrued but unpaid at 31.8.2000 was $40 REQUIRED : Prepare (a) the Income and Expenditure Account and (b) the Balance Sheet (W1) Assets = Accumulated Fund + Liabilities Accumulated Fund = Assets - Liabilities === = === (b) Balance Sheet as at 31 August 2000 Assets : Equipment ( ) Subscriptions in arrears Cash Liability : Accrued Expenses $ Accumulated Fund : $ Balance at 1.9.1999 (W1) Add : Su rplus


								
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