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JAMB Principles of Accounts 2009 Question 32

Question 32

Not-for-Profit Organisations

Given:
Furniture and fittings ₦20,000
Equipment ₦15,000
Bank overdrafts ₦6,500
Bar creditors ₦4,800
Subscription in arrears ₦4,700
Subscription in advance ₦650
What is the accumulated fund?

  1. A.23,700
  2. B.27,750
  3. C.29,650
  4. D.51,650
Show the answer and explanation

Answer: B (27,750)

Explanation

Assets = 20 000 + 15 000 + 4 700 = ₦39 700. Liabilities = 6 500 + 4 800 + 650 = ₦11 950. Accumulated fund = 39 700 − 11 950 = ₦27 750.