Question 2
Not-for-Profit OrganisationsEntrance fees ₦1 200
Subscriptions (including ₦850 arrears) ₦4 310
Donations received ₦1 500
Proceeds from sales ₦2 300
Total payments ₦8 200
Depreciation ₦2 100
Closing cash balance ₦1 110
The club deposited 200% of the closing cash balance in the bank during the period.
Calculate the total figure for the receipts and payments account.
- A.₦11 410
- B.₦13 630
- C.₦9 310
- D.₦11 530.
Show the answer and explanation
Answer: D (₦11 530.)
Explanation
Payments side = payments 8 200 + bank deposit (200% × 1 110 = 2 220) + closing cash 1 110 = ₦11 530. Depreciation is not a cash item.