1. Advanced Financial Accounting FIN-611
Main Ahmad Farhan
Lecture-8
Non-Profit organizations

2. Statement of Affairs Assets Rs Less Liabilities Club ground 50,000
Sports equipment ,500
Furniture ,000
Investments ,000
Subscription due ,000
Opening balance ,800
85,300
Less Liabilities
Subscription received in advance
Capital fund ,800

3. Working Sports Equipment Date Particulars Amount 1 Jan 2007 1 Sep 2007
Opening balance
Addition
During the year
15,500
10,000
31 Dec
2007
Depreciation
Balance
3,767
21,733
25,500

4. Working (Office Equipment)
Opening balance 15,500
Add Addition 10,000
25,500
Less Depreciation 3,767
Net book value 21,733

5. ---- Club Balance sheet 31-12-2007
Assets
Amount
Capital fund & Liabilities
Club building
Sports equipment
Furniture
Investments
Subscription due
Cash
50,000
21,733
1,900
12,000
300
7,200
Capital fund
Subscription received in advance
92,233
900
93,133

6. Working Furniture Particulars Amount Opening balance 2,000
Depreciation
Balance
100
1,900

7. Owner’s Equity Business Organizations
Opening capital xxx
Add Net profit xxx
Add Fresh capital xxx
Less Drawings xxx
Closing capital xxx

8. Capital Fund Non Profit Organizations
Opening capital fund xxx
Add Surplus xxx
Add Capital receipts during the year xxx
Closing capital fund xxx

9. Working Capital fund Opening capital 84,800 Add Surplus 6,633
Less Capital receipts
Closing capital fund ,233

10. Question
(Solution in PDF file)

11. Question Receipts Amount Payment
The following summary of the Cash Book has been prepared by the Treasure of a club.
Receipts
Amount
Payment
Cash in hand & at bank on April 1, 2007
Member’s subscription
Entrance fee
Restaurant fee
Games competition receipts
Dues to secretary for petty expenses
4,740
29,720
3,200
56,800
13,640 80
Wages-Outdoor staff
Restaurant purchases
Rent-18 months (June 30, 2008)
Rates
Secretary salary
Lighting, Cleaning & sanitary service
Competition prizes
Printing, postage & sundries
Fixed deposit in bank Balance
13,380
50,400
7,500
2,200
3,120
7,700
4,000
6,000
8,000
5,880
108,180

12. Question On April 2007, the club assets were: Furniture and Equipment
Rs. 48,000; Restaurant stocks Rs. 2,600; Stock of prizes Rs. 800.
Rs 5,200 was owing for supplies to the restaurant.
On March 31, 2008 the restaurant Stocks were Rs. 3,000 an prizes
On hand were Rs. 500 while the club owed Rs. 5,600 for restaurant
supplies.
It was also found that member’s subscription un paid on March 31,
2008, amounted to Rs. 1,000 and that the figure of Rs. 29,720
shown in cash book included Rs. 700 in respect of previous year
and Rs. 400 paid in advance for the following year.

13. Supplies
Opening due 5,200
Closing due 5,600
Supplies expenses 50,400

14. Supplies Cash paid 50,400 Less Opening due 5,200 Add Closing due 5,600
Supplies expenses 50,800

15. Cost of Goods Sold Purchases 50,800 Add Opening stock 2,600
Less Closing stock 3,000
Cost of goods sold 50,400

16. Income statement Sales 56,800 Less Cost of Goods Sold
Opening stock ,600
Add Purchases ,800
Less Closing stock 3,000
50, ,400