Archive about 'Non-Trading Concerns'

Answer To True Or False Questions On Accounts Of Non Trading Concern

REFER TO QUESTIONS

True

False

1.0

Receipts and payments account starts with the balance in the beginning and ends with the balance at the end

X

2.0

Income and expenditure account is a real account

X

3.0

General donations of small amount appearing in Receipts and Payments account are treated as income [...]

True & False Question With Answers On Accounts Of Non Trading Concerns

QUESTIONS [  CLICK HERE FOR ANSWER]

True

False

1.0

Receipts and payments account starts with the balance in the beginning and ends with the balance at the end

2.0

Income and expenditure account is a real account

3.0

General donations of small amount appearing in Receipts and Payments account are [...]

List Of Topics Under The Heading Non Trading Organizations

Click to the respective topic on Non Trading Organizations:

Content Page On NON TRADING ORGANIZATIONS

1.0

Accounting For Non Trading Concerns – Part 1

2.0

Accounting For Non Trding Concerns – Part 2

3.0

Non Trding Concerns And Its Financial Statements

4.0

 
QUESTIONS BANK:
Accounting Test Question No NT 1
Answer to Accounting Test Question No. NT 1
Accounting Test Question No. NT 2

Accounting Test Question No.NT 2 On Non-Trading Organization

Question No NT 2 On Non-Trading Organization
The following statement has been prepared for the XYZ Social Club:
Receipts and Payments Account for the year ended 30 April 2007

 

$

 

$

Balance at bank at 1 May 2006

1,950

Payment for food and drink

6,320

Subscriptions

4,975

Wages

8,790

Cafeteria takings

11,860

New furniture

600

Receipt from members for trip to Bangkok

10,900

Insurance

430

Letting of club premises

3,100

Annual social expenses

760

Sale of tickets-annual social

720

Lighting and heating

510

 

 

Purchase [...]

Answer To Accounting Test Question NT No. 1 On Non-Trading Organizations

Answer to Accounting Test Question NT No.1:

ABC Sports Club

(a) Subscriptions Account

2005

$

2005

$

Jun 1

Balance b/d

1,230

Jun 1

Balance b/d

100

Income & Expenditure a/c

69,826

Receipts a/c

70,066

2006

2006

May 31

Balance c/d

450

May 31

Balance c/d

1,340

71,506

71,506

(b) [...]

Accounting Test Question NT No. 1 On Non-Trading Organization

Accounting Test Question NT No 1:

Question:
ABC Sport Club produced the following information relating to the Club’s financial year ended 31 May 2006

Receipts and Payments Account for the year ended 31 May 2006

$

$

Balance at bank at 1 Jun 2005

1,076

Groundsmen’s wages

18,500

Sales of refresments

7,160

Purchase of refreshments

3.110

Subscriptions

70,066

Wages of refreshment staff

3,700

Social events- receipts

19,240

Repairs & [...]

Non-Trading Concerns – Its Financial Statements ( Part 3)

This article explained what’s are the financial statements of a non-trading concern:

What are the Financial Statement of A Non-Trading Concern:

 
They are the following:
 
· Receipts and Payments Account;
· Income and Expenditure Account ( also includes the Trading account if it runs restaurant or bar)
· A Balance Sheet if it has other assets beside Cash
 

 
 
 
Tabulated below the [...]

Accounting For Non-Trading Concerns ( Part 2)

This article explained what’s normally is the sources and expenditure of a non-trading concern.

Sources of Income In a Non-Trading Concern

Revenue in nature:
·  Entrance fees;
·  Subscriptions;
· Interest from investment;
· Visitors fees;
· Lockers fees;
· Gross trading profit from bar or restaurant;
· Refreshment receipts;
· Donations;
 
Capital in nature
 
· Legacies;
· Donations ( if stated for capital purpose like building a swimming pool)
 
Salient point:
 
·      Only the revenue income [...]

Accounting For Non-Trading Concerns ( Part 1)

Unlike a normal trading concern, non trading concerns like clubs, societies and association are incorporated without the motive of making profits.

Their main objective is to promote amongst its members recreational interest.

However, some clubs and societies which run bars or restaurant for the convenient of the member on a permanent basis with the intention of profit [...]