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!
Advanced Financial Accounting FIN611 Main Ahmad Farhan Lecture8 NonProfit organizations Statement of Affairs Assets Rs Club ground Sports equipment Furniture Investments Subscription due Opening balance 50,000 15,500 2,000 12,000 2,000 3,800 85,300 Less Liabilities Subscription received in advance 500 Capital fund 84,800 Working Sports Equipment Date Particulars Amount Date 1 Jan Opening balance 15,500 2007 1 Sep Addition 10,000 2007 During the year 25,500 31 Dec 2007 31 Dec 2007 Particulars Amount Depreciation 3,767 Balance 21,733 25,500 Working (Office Equipment) Opening balance Add Addition Less Depreciation Net book value 15,500 10,000 25,500 3,767 21,733 Club Balance sheet 31122007 Assets Club building Sports equipment Furniture Investments Subscription due Cash Amount Capital fund & Liabilities 50,000 Capital fund 21,733 Subscription received in 1,900 advance 12,000 300 7,200 93,133 Amount 92,233 900 93,133 Working Furniture Particulars Amount Particulars Opening balance 2,000 2,000 Depreciation Balance Amount 100 1,900 2,000 Owner’s Equity Business Organizations Opening capital Add Net profit Add Fresh capital Less Drawings Closing capital xxx xxx xxx xxx xxx Capital Fund Non Profit Organizations Opening capital fund Add Surplus Add Capital receipts during the year Closing capital fund xxx xxx xxx xxx Working Capital fund Opening capital Add Surplus Less Capital receipts Closing capital fund 84,800 6,633 800 92,233 Question (Solution in PDF file) Question The following summary of the Cash Book has been prepared by the Treasure of a club. 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 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 29,720 3,200 56,800 13,640 80 Fixed deposit in bank Balance 108,180 2,200 3,120 7,700 4,000 6,000 8,000 5,880 108,180 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 Opening due Closing due Supplies expenses 5,200 5,600 50,400 Supplies Cash paid Less Opening due Add Closing due Supplies expenses 50,400 5,200 5,600 50,800 Cost of Goods Sold Purchases Add Opening stock Less Closing stock Cost of goods sold 50,800 2,600 3,000 50,400 Income statement Sales Less Cost of Goods Sold Opening stock 2,600 Add Purchases 50,800 Less Closing stock 56,800 3,000 50,400 6,400 ... Owner’s Equity Business? ?Organizations? ? Opening capital Add Net profit Add Fresh capital Less Drawings Closing capital xxx xxx xxx xxx xxx Capital Fund Non Profit? ?Organizations Opening capital fund