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JAMB Principles of Accounts 2001 Question 31

Question 31

Not-for-Profit Organisations

Given:
(₦)
Club trading profit 12,000
Members' subscription 15,000
Profit on sale of fixed assets 2,500
Loss on sale of investments 1,000
Wages 16,500
Other expenses 10,000
Determine the club's excess of income over expenditure

  1. A.₦500
  2. B.₦1,500
  3. C.₦2,000
  4. D.₦2,500.
Show the answer and explanation

Answer: C (₦2,000)

Explanation

Income = 12,000 + 15,000 + 2,500 = 29,500. Expenditure = 1,000 + 16,500 + 10,000 = 27,500. Excess = ₦2,000.