Archive about 'Non-Trading Concerns'

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 [...]