《Level 2 Ch 3 Income amp; Expenditure Worksheet》.doc

Chapter 3 Income Expenditure a/c [01] Introduction Club and society provides services for member. It is not for profit-making. [02] Types of Organisations Private Enterprise (profit making) Sole Proprietor + Partnership + Limited Company + Franchising + Co-operative Public Enterprise (Non-profit making) Public Corporations + Government Departments + Local Authorities Non-profit Making Organisations: Club, Associations, Parties, Hospitals, Schools, Charitable bodies [03] Receipts and Payments Account Profit Making Firm Non-profit Making Organization 1. Cash Book 1. Receipts and Payments Account Receipts and Payments a/c $ $ Bal b/d 200 Bar wages 700 Subscriptions 1000 Sports stadium expenses 200 Rent received 100 Bal c/d 400 1300 1300 [04] Income and Expenditure Accounts Income and expenditure account is an account for a non-profit making organization to find the surplus or deficit made during a period.  Profit Making Firm Non-profit Making Organization Trading account sales gross profit / loss Trading a/c Bar taking Bar profit / loss Profit and Loss account Income Expenditure a/c Net profit Surplus Net loss Deficit [05] Accumulated Fund Accumulated Fund = Assets - Liabilities Profit Making Firm Non-profit Making Organization 1. Capital 1. Accumulated Fund 2. Drawing 2. Not available Classwork 1 Sport Equipment $8,000, Club Premises $22,000, Furniture Fittings $5,000, Rates Insurances $200, Bank $2,000, Creditor $1,000, $ Bar Stock $2,000 Use the above information to prepare the statement of affairs. Statement of Affairs Assets $ $  [06] Subscriptions (Income) The major source of incomes of a non-profit making organisation is the subscriptions of members. However, subscriptions in arrears and subscription in advance at the end of each financial period are always occurred and appropriate adjustments