Advanced Financial Accounting FIN611 Main Ahmad Farhan Lecture8

Advanced Financial Accounting FIN-611 Main Ahmad Farhan Lecture-8 Non-Profit organizations

Statement of Affairs Assets Club ground Sports equipment Furniture Investments Subscription due Opening balance Rs 50, 000 15, 500 2, 000 12, 000 3, 800 85, 300 Less Liabilities Subscription received in advance Capital fund 500 84, 800

Working Sports Equipment Date Particulars 1 Jan Opening balance 2007 1 Sep Addition 2007 During the year Amount Date 15, 500 31 Dec Depreciation 2007 31 Dec Balance 2007 10, 000 25, 500 Particulars Amount 3, 767 21, 733 25, 500

Working (Office Equipment) Opening balance Addition Less Depreciation Net book value 15, 500 10, 000 25, 500 3, 767 21, 733

---- Club Balance sheet 31 -12 -2007 Assets Amoun Capital fund t & Liabilities Amount Club building Sports equipment Furniture Investments Subscription due Cash 50, 000 21, 733 1, 900 12, 000 300 7, 200 92, 233 900 93, 133 Capital fund Subscription received in advance 93, 133

Working Furniture Particulars Amount Opening balance 2, 000 Depreciation Balance 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

Capital Fund Non Profit Organizations Opening capital fund Add Surplus Add Capital receipts during the year Closing capital fund 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 Wages-Outdoor staff Restaurant purchases Rent-18 months (June 30, 2008) Rates Secretary salary Lighting, Cleaning & sanitary service Competition prizes Printing, postage & sundries Fixed deposit in bank Balance 13, 380 50, 400 7, 500 29, 720 3, 200 56, 800 13, 640 80 108, 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 Add Purchases Less Closing stock 56, 800 2, 600 50, 800 3, 000 50, 400 6, 400