passwella.
Menu

JAMB Principles of Accounts 1994 Question 31

Question 31

Not-for-Profit Organisations

The net profit from the trading account of a non-profit making organization would be treated as income in the

  1. A.income and expenditure account
  2. B.receipt and payment account
  3. C.balance sheet
  4. D.statement of affairs.
Show the answer and explanation

Answer: A (income and expenditure account)

Explanation

Profit from a club's bar or trading activity is transferred to the income and expenditure account as income.