Illustration 4 – Account of Non-Trading Organizations

Illustration 4

The receipts and payments accounts of Lion Club for the year ended 31st December, 1999 were as follows:

You are required to prepare:

(a) Statement of affairs

(b) Income and Expenditure accounts

(c) Balance sheet as at 31st December, 1999.

Solution

Workings

Furniture and Fitting

1,500 + 1,300 = N2,800

2,800 x 10% = N280

Premises:

5,000 x 10% = N500