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WAEC Financial Accounting 2003 Question 23

Question 23

Not-for-Profit Organisations

Club house N375,000
Furniture N250,000
Sports kit N400,000
Subscriptions prepaid N10,000
Bar creditors N156,000
Subscriptions owing N45,000
What is the club's Accumulated Fund?

  1. A.N924,000
  2. B.N914,000
  3. C.N904,000
  4. D.N834,000
Show the answer and explanation

Answer: C (N904,000)

Explanation

Assets 375,000 + 250,000 + 400,000 + 45,000 = 1,070,000 less subscriptions prepaid 10,000 and bar creditors 156,000 = N904,000.