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WAEC Financial Accounting 2007 Question 28

Question 28

Not-for-Profit Organisations

Youngsters Club has a membership of 115 persons. Each member pays an annual subscription of N50. During the year ended 31st December 2005, 8 members had not paid their subscriptions.
The subscriptions recorded in the Income and Expenditure Account for the year ended 31st December 2005 is

  1. A.N5,750
  2. B.N5,350
  3. C.N400
  4. D.N115
Show the answer and explanation

Answer: A (N5,750)

Explanation

All 115 members owe for the year: 115 × 50 = N5,750.