Homework answers / question archive / ZAMBIAN OPEN UNIVERSITY SCHOOL OF BUSINESS STUDIES ACCOUNTING FOR NON-PROFIT ORGANIZATIONS BBAC 432 INSTRUCTIONS: This Question Paper contains Four (4) Questions

ZAMBIAN OPEN UNIVERSITY SCHOOL OF BUSINESS STUDIES ACCOUNTING FOR NON-PROFIT ORGANIZATIONS BBAC 432 INSTRUCTIONS: This Question Paper contains Four (4) Questions

Accounting

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ZAMBIAN OPEN UNIVERSITY

SCHOOL OF BUSINESS STUDIES

ACCOUNTING FOR NON-PROFIT ORGANIZATIONS

BBAC 432

INSTRUCTIONS:

1. This Question Paper contains Four (4) Questions. Answer ALL Questions
2. The answer paper should be typed using Microsoft Word 
3. PDF, Picture, scanned and handwritten answer paper will not be marked
4. The answer paper should be uploaded into Moodle LMS only. 
5. The answer paper will automatically be tested for plagiarism when uploaded. Answer papers with a high plagiarism score will not be marked. 
6. Answer papers submitted using email or in person will not be marked

Question One

The following balances are extracted from the Private Ledger of JB Investor as at 3oth June 2006.

                                                                                                                                       K

Profits on Realisation of investments                                                                15 500

Sundry investments                                                                                            155 000

Provision for depreciation on investments (as at 1/7/2005)                         24 000

Loss on Realisation of investments                                                                    23 000

Capital (as at 1/7/2005)                                                                                     159 750 Dividends and Interest  Received (Net)                                                               7 600

Provision for Tax Liability outstanding                                                                1 500

Drawings                                                                                                                   8 500

Properties                                                                                                              14 000

Cash at bank (Deposit Account)                                                                           5 000 Cash at bank (Current Account)                                                                           4 500

Deposit Interest received                                                                                         220

Sundry creditors                                                                                                        500

Sundry debtors for rents                                                                                          450

Out goings re properties                                                                                          230

Rents received                                                                                                        1 600

The market value of the investments at 30^th June, 2006, was K124 000 and the provision is to be increased to cover the full depreciation.

The liability for outstanding tax has been agreed on K1 200. Provide for K950 on current profit.  Required:

Prepare a Trial Balance and draw an Income and Expenditure Account for the twelve months to 30^th June 2006, together with the Statement of Financial Position as at that date.  

                                                                                               (25 marks)

 

 

 

 

 

 

Question Two

The Chairman and Treasurer of Lazyman’s Club had conflicting views regarding the amount of subscriptions to be charged to the Income and Expenditure Account for the year ended 31^st December 2013: The Chairman believed it should be K101 000, while the Treasurer believed it should be K113 000.

Your are required to consider the information below and help determine the correct figure of subscriptions to be charged to the Income and Expenditure Account for the year ended 31^st December 2013.

Subscriptions received by the club during the year 2013 were as follows:

2013 ………. K96 000

2012 ………. K3 000

2014 ………. K2 000

Subscriptions due to the club as on 31/12/2013: ………… K12 000

Subscriptions due to the club as on 31/12/2012: ………… K5 000

Subscriptions received in advance in 2012 fir 2013: ……. K5 000

                                                                                       (25 marks)

Question Three

Enumerate five main differences between Receipts and Payments Account and an Income and Expenditure Account. Show your answer in tabular format as shown below:

 

RECEIPTS AND PAYMENTS ACCOUNT

1.

2.

3.

4.

5.

INCOME AND EXPENDITURE ACCOUNT

1.

2.

3.

4.

5.

 

                                                                                         (25 marks)

Question Four

A Subscriptions Account may, at the same time, have both debit and credit opening balances appearing as balances brought down (b/d); and also debit and credit closing balances appearing as balances carried down (c/d). Using a “T” account as a sketch explain the meaning of each of the above balances.

                                            (25 marks)

…….The End…..