JAMB Principles of Accounts 2002 Question 25

Question 25

Not-for-Profit Organisations

Use the information below to answer questions 24 and 25.
Receipts and Payments Account (Extract)
Receipts (₦): Bal. b/d 4000; Subscription received ?; Donations received 6000; Refreshment sales 10000
Payments (₦): Motor vehicle expenses 12000; Insurance 3000; Ambulance expenses 12500; Electricity 1000; Balance c/d ?
Subscriptions received are always put at 125% of the total donations received and refreshment sales.
Compute the subscriptions received

A.₦30000
B.₦28000
C.₦24000
D.₦20000.

Show the answer and explanation

Answer: D (₦20000.)

Explanation

125% × (donations 6 000 + refreshment sales 10 000) = 1.25 × 16 000 = ₦20 000.