at are sold to public to provide income for the club. For the financial year ending December 31, 2020 the clerical officer of the club provided the following information in relation to the club’s activities: Payments $ Receipts $ Electricity 120,000 subscription 300,000 Purchase of television 60,000 Sale of paintings 800,000 Purchase of paintings 320,000 Refreshment, etc.
Expressive Youths is a non-profit youth club in the Corporate Area that engages its members in
the buying and selling of paintings that are sold to public to provide income for the club. For the
financial year ending December 31, 2020 the clerical officer of the club provided the following
information in relation to the club’s activities:
Payments $ Receipts $
Electricity 120,000 subscription 300,000
Purchase of television 60,000 Sale of paintings 800,000
Purchase of paintings 320,000 Refreshment, etc. sale 600,000
Refreshments, etc. 280,000 Donations 250,000
Stipend for clerk 96,000 Other activities 200,000
Stationery 50,000
Additional Information:
(i) On January 1, 2020 the club had paintings valued at $350,000., while subscription in
arrears at that date was $15,000
(ii) On December 31, 2020 the club owed $25,000 for electricity, while $10,000 was paid
for stationery that was to be received in January 2021.
(iii) The opening cash balance on January 1, 2020 was $620,000 while paintings in stock
on December 31, 20 was valued at $400,000.
(iv) At December 31, 2020, members had paid dues in advance of $34,000
Required:
(A)
i. Explain the difference between accounts for non-profit and for-profit
organisations (4 marks)
ii. Identify FOUR (4) examples of non-profit organisations in your country and the
state the services/functions of EACH (4 marks)
(B) Prepare the following statements for Expressive Youths.
(i) The Receipts and Payments Account for the year ending December 31, 2020. (8
marks)
(ii) The subscription account (4 marks)
(iii) The Painting Trading Account for the financial period. (4 marks)
(iv) The Income & Expenditure Account for the financial period. (8 marks)
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