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WAEC Financial Accounting 2007 Question 29

Question 29

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 shown in the Balance Sheet as at 31st December 2005 is

  1. A.N400 (asset)
  2. B.N150 (asset)
  3. C.N150 (liability)
  4. D.N400 (liability).
Show the answer and explanation

Answer: A (N400 (asset))

Explanation

8 × 50 = N400 owed by members, an asset.