Question 36
Not-for-Profit OrganisationsReceipts and Payments Account
Receipts: Balance – 1st January, 2002 N200; Subscriptions received: 2002 N3,600, 2003 N250; Receipts from Bar N4,500; Receipts from dance N500; Sundry receipts N400; total N9,450
Payments: Bar supplies N2,850; Wages N350; General expenses N400; Printing expenses N120; Equipment N650; Repairs N200; Balance – 31st December N4,880; total N9,450
Additional information (1/01/02; 31/12/02): Equipment N4,500; N5,150. Stock – Bar N1,200; N3,200. Bar supplies N2,400; N5,600
Gross profit from Bar trading is
- A.N4,500
- B.N1,350
- C.N450
- D.N400
Show the answer and explanation
Answer: C (N450)
Explanation
Purchases = 2,850 + 5,600 − 2,400 = 6,050; cost = 1,200 + 6,050 − 3,200 = 4,050; profit 4,500 − 4,050 = N450.