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WAEC Financial Accounting 2016 Question 28

Question 28

Not-for-Profit Organisations

Purchases of fixtures and fittings by a club is recorded in the

  1. A.Receipts and Payments Account only.
  2. B.Income and Expenditure only.
  3. C.Receipts and Payments Account and Balance sheet.
  4. D.Income and Expenditure Account and Balance sheet.
Show the answer and explanation

Answer: C (Receipts and Payments Account and Balance sheet.)

Explanation

The cash paid appears in the receipts and payments account and the fixtures appear as a fixed asset in the balance sheet.