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WAEC Financial Accounting 2005 Question 27

Question 27

Not-for-Profit Organisations

RECEIPTS AND PAYMENTS ACCOUNT
Dr: Balance b/f D1,000; Subscriptions D15,000; total D16,000
Cr: Salaries D2,000; Rent D1,000; Rates D1,500; Expenses D500; Balance c/f D11,000; total D16,000
(1st January, 2004; 31st December, 2004):
Fixed Assets D50,000; D50,000
Rent (accrued) D200; D250
Rates (prepaid) D300; D400
Subscriptions in arrears D1,500; D1,000
Subscriptions in advance D1,300; D800
Accumulated fund as at 1st January 2004 is

  1. A.D54,100
  2. B.D52,800
  3. C.D52,600
  4. D.D51,300
Show the answer and explanation

Answer: D (D51,300)

Explanation

50,000 + rates prepaid 300 + subscriptions in arrears 1,500 + cash 1,000 − rent accrued 200 − subscriptions in advance 1,300 = D51,300.