1. By : Wan Maimunah Wan Ishak Commerce Dept Tel : 09-5655300 ext 436

2.  At the end of this chapter, students should be able to : 1. Understand the non profit organization 2. Identify receipts and expenditure of NPO 3. Understand special activities run by NPO 4. Produce accounting records for NPO

3.  Club & Society  Main purpose : to provide facilities to the members ( not profit making)  Example : ??  Recommendation : Refer to some website of any club & society in Malaysia to have some overview of activities of any club & society

4.  Financial statement need to be presented in AGM  Items of Financial Statement : 1. Revenue & Payment Account 2. Income & Expenditure Account 3. Balance Sheet

5. Capital Revenue Contribution for special purposes Income Revenue Membership Fee Entrance Fee Small amount of donation

6. Capital Expenses Fund of certain project Buying of Non Current Asset Income Expenses All expenses spent for that NPO

7. Example : TransactionRevenueExpenses CapitalIncomeCapitalIncome Laundry Honorarium Interest on fixed deposit Gift Competition Fee Entrance Fee Utilities Maintenance Fee Purchase of furniture Premises Rent Donation for club fund Donation to build swimming pool

8. Example : TransactionRevenueExpenses CapitalIncomeCapitalIncome Donation Annual Fee Purchase of sport equipment Sales of old furniture Insurance Donation to grannies house Stamp Repair club premises Donation to build parking lot Salary of club’s clerk Lawyer fee to buy premise Dividend from investment

9. Receipts & Payment Account ParticularsRMParticularsRM Bal b/f All receipts will be recorded here XXAll payments will be recorded here Bal c/f XX

10. Income & Expenditure Account ParticularsRMParticularsRM All expenses will be recorded here XXAll income will be recorded here XX

11. Fee Account Jan 1Unearned b/fxxJan 1Advanced b/fXx Dec 31Income & ExpenditurexxDec 31Receipts & Paymentxx Advanced c/fxxUnearned c/fxx I&E – revenue item BS – current liability BS – current asset

12. 1. A club golf with 100 members charge the annual fee for RM50/member. The club received RM 4,200 as fees for the financial year ended 31 Dec 2009. That amount inclusive of RM 300 for 2010. Prepare Fees A/c 2. Balance as at 1 Jan 2009 : Unearned fees for 2008 RM 160 Advanced fees for 2009 RM 80 Extract from Cash Book as at 31 Dec 2009 : Cash Book Fees for 2008RM 140 Fees for 2009RM 4,400 Fees for 2010RM 110 Additional info: Unearned fees for 2009 as at 31 Dec 2009 is RM 65 Balance for Unearned Fees for 2008 are write off. Prepare : Fees A/c, extract of P&L and extract of Balance Sheet

13. 3. Extract from Cash Book as at 31 Dec 2009 : Cash Book Fees for 2008RM 80 Fees for 2009RM 4,850 Fees for 2010RM 145 Additional info. : On 1 Jan 2009, unearned fees is RM 98. Unearned fees for 2008 are write off. There are Unearned Fees for 2009 for RM 68 as at 31 Dec 2009. Prepare : Fees A/c, extract of P&L and extract of Balance Sheet

14. Enhance your understanding :

17. Income & Expenditure A/c fye 31/3/ Rent240Profit from sales315 Printing & Stationery150Ticket sales2650 Organizer’s expenses160Fee1600 Maintenance60Whole life fee170 Salaries520 Misc55 Depre-equipment180 Surplus33704735 How did this figure derived ??

18. Balance Sheet as at ……….. Non Current Asset : Equipment1100 - Accu. Depre(180) 920 Current Asset : Unearned fee400 Prepaid rent60 Cash3380 3840 Current Liab : Printing(30)3810 4730