passwella.
Menu

JAMB Principles of Accounts 2007 Question 9

Question 9

Not-for-Profit Organisations

Given:
Receipts and Payments Account
Bal. b/f ₦1 000 | Salaries ₦5 000
Donations ₦5 000 | Secretariat expenses ₦5 000
Subscriptions ₦7 000 | Dance expenses ₦5 000
Sales of refreshments ₦11 000 | Refreshments ₦15 000
Entertainment ₦21 000 | Bal. c/d ₦15 000
Total ₦45 000 | Total ₦45 000
Calculate the surplus income.

  1. A.₦45 000
  2. B.₦44 000
  3. C.₦30 000
  4. D.₦14 000.
Show the answer and explanation

Answer: D (₦14 000.)

Explanation

Income = 5 000 + 7 000 + 11 000 + 21 000 = ₦44 000. Expenditure = 5 000 + 5 000 + 5 000 + 15 000 = ₦30 000. Surplus = ₦14 000 (balances b/f and c/d are not income or expense).