ABFA2064 FINANCIAL ACCOUNTING III 1 Michelle Tan 2024

Lecture 3: Accounting for Non-profit Organisation

Learning Objectives:
2 Final accounts
After you have studied this chapter, you should be able to:
Explain the main differences between the financial statements of The final accounts of these organisations are divided in three
non-profit-oriented organisations and those of profit-oriented parts
organisations (a) Receipts and payments Account (RPA)
Prepare receipts and payments accounts (b) Income and expenditure Account (IEA)
(c) Balance sheet (BS)
Prepare income and expenditure accounts and balance sheets
for non-profit-oriented organisations
2.1 Receipts and payments Account
Calculate profit and losses from special activities and incorporate
them into the financial statements RPA is a summary of the cash book for the period. An organisation with
Make appropriate entries relating to subscriptions, life no other assets and liabilities, a summary of cash book reveals everything
membership, and donations about what have happened financially during a period.

Example 1:
1. Introduction Receipts and Payments Account for the year ended 31 December 20x1
RM RM
The non-profit organisations (such as club, society or association) are Balance b/f 4,720 Committee expenses 1,160
set up to provide services to their members, not for the purpose of Subscription 22,96 Printing and stationery 660
trading or profit making. 0
Rent received 2,000 Rent 5,920
Their main source of income is mainly from subscription fee and Donations 320 Wages and salaries 14,56
donations from members and the public. 0
Balance c/d 7,700
A proper accounting records is required to ensure that they have 30,00 30,00
sufficient income to meet the expenditure in long-term. 0 0
Balance b/d 7,700
It should show the financial position of the organisation to its members
and others. The accounting principles are the same as for trading RPA shows the cash received on the debit side and cash paid out on the
organisations, but some of terms used are different. credit side, irrespective of whether:

(a) the cash transaction is for the current financial year, or for the
previous period or for the subsequent period;
ABFA2064 FINANCIAL ACCOUNTING III 2 Michelle Tan 2024

(b) the cash transaction is for the capital or revenue expenditure (ii) tickets sales from annual dinner and dance deduct
expenses incurred, etc.
Therefore, the RPA is actually a record of cash in summary form.
Profit or loss from such activities to be recorded to the
Income and expenditure account.

2.2 Income and expenditure Account (IEA)

An organisation with other assets and liabilities, a balance sheet and a 2.2.2 Accumulate fund
statement to show whether the net worth has increased or decrease.
A non-profit organisation has an accumulated fund, same as a
IEA is like the statement of profit or loss of a trading organisation. The capital account for a sole trader, that is determine from the
expenses of the period are matched against the income relating to the difference between assets and liabilities.
same period.
Accumulated fund will be increase/decrease when there is
When the income is more than the expenses, the profit known as surplus
‘surplus’ /deficits.

When the income is less than the expenses, the profit known as 2.3 Balance sheet
‘deficits’
A balance sheet (like statement of financial position) is required
The principles of accruals / matching concept apply in this to prepare to show the assets and liabilities of the non-profit
account. organisation as at the end of the accounting period.

3. Sources of Income:
2.2.1 Profit or loss for a special purpose ▪ Membership annual, quarterly, monthly subscriptions
▪ Payments for life membership
When some business activities are done in order to make a
▪ Profit from some business activities, such as bar, canteen etc
profit, the profit is to be used for the expenses of the non-
profit organisation. For example: ▪ Profit from social events such as dinner, contest etc
▪ Interest from investment in fixed deposits, trust fund, shares etc
(i) fees charge on a football competition to finance the ▪ General donation received
expenses incurred,
3.1 Subscription in arrears:
ABFA2064 FINANCIAL ACCOUNTING III 3 Michelle Tan 2024

These are accrued income, which represents the subscription fees
owed by the members to the non-trading organisations. This
income receivable will be shown as an asset to the organisation.
3.2 Subscription in advances:
Blue Star Badminton Club has 200 members each of whom pays
a quarterly subscription of RM50 per month.
During the three months ended 30 April 20x2, 35 members pay their
subscription for the next quarter year, but 18 members still not paid
their subscription for the current accounting period.

These are the subscription fees paid by the members to the non- Required:
trading organisations for the next accounting period. This income
received in advance will be shown as a liability to the organisation. Based on the information above, calculate the following figure for
the three months ended 30 April 20x2:
The subscription amount to be included in the IEA must be the
subscription related to that accounting period for which the IEA is (i) Subscription in advance (ii) Subscription in arrears
prepared.

The principles of accruals / matching concept apply in this account.

Therefore, adjustments for subscription received for the previous or

subsequent period is required, by constructing a subscription account. Solution:
Subscription in advance = 35 members x (RM50x3) = RM5,250
Subscription in arrears = 18 members x (RM50x3) = RM2,700
4 Membership Subscription

Monthly or quarterly payments of membership subscriptions in Activity 2: Subscription

advance for next accounting period by the members, being received
in advance by the club/society, this will be shown as current liability
in the balance sheet as a “subscription in advance”.
When members are in arrears with their subscriptions and owe
money to the club/society, they are receivables of the organisation.
This will be appeared as current assets in the balance sheet as
“subscription in arrears”.
Activity 1: Subscription in advance & Subscription in
arrears
Kitty Fun Club have 300 members, they pay RM30 monthly
subscriptions. At 1 January 2022, 5 members not yet paid the
subscription for December 20x1. 18 members paid subscription for
January 20x2 before 31 December 20x1.
By the year ended 31 December 20x2, 8 members not yet paid their
November and December 20x2, but 14 members already paid for
January 20x3.
Based on the information above, calculate the following figures:

(i) Subscription in arrears as at 1 January 20x2

ABFA2064 FINANCIAL ACCOUNTING III 4 Michelle Tan 2024

(ii) Subscription in advance as at 1 January 20x2

(iii) Subscription in arrears as at 31 December 20x2
(iv) Subscription in advance as at 31 December 20x2 Activity 3: Subscription account
(v) Subscription recognised in the Income and expenditure account
(vii) Subscription received in the year 20x2 The following information was obtained from Kelab Central

1 January 31 December
Solution: 20x2 20x2
RM RM
1 January 20x2 Subscriptions in 180 45
[1] Subscription in arrears = 5 members x RM30 = RM150 arrears
[2] Subscription in advance = 18 members x RM30 = RM540 Subscriptions in 225 405
advance
31 December 20x2
[3] Subscription in arrears = 8 members x RM30 x 2 mths = Subscriptions received during the year RM1,230.
RM480
[4] Subscription in advance = 14 members x RM30 Required:
= RM420 Calculate the amount of subscriptions to be transferred to Income and
expenditure account for the year ended 31 December 20x2.
During the year 20x2, the total subscriptions received:
[5] 300 members x RM30 x 12 months = RM108,000 Solution:
Subscriptions Account
20x2 RM 20x2 RM
[6] Balancing figure Jan 1 Balance b/d 180 Jan 1 Balance b/d 225
Subscription Account (arrears) (advance)
20x2 RM 20x2 RM Dec Income & 870 Dec 31 Bank 1230
31 Expenditure
Balance Balance `` Balance c/d 405 `` Balance c/d 45
Jan 1 150 Jan 1 540
b/d [1] b/d [2]
1455 1455
Income & Exp. Bank 107,55
Dec 31 108,000 Dec 31 2023 2023
[5] [6] 0
Jan 1 Balance b/d (arears) 45 Jan 1 Balance b/d 405
`` Balance c/d 420 `` Balance c/d 480
108,57 Activity 4: Subscription account
108,570
0
20x3 20x3 The following information relates to Smart Swimming Club:
Balance b/d Balance b/d
Jan 1 480 Jan 1 420
[3] [4] 1 January 20x2 31 December 20x2
ABFA2064 FINANCIAL ACCOUNTING III 5 Michelle Tan 2024

RM RM 85,95
85,950
Subscription in 0
3,680 4,230
arrears 2022 2022
Subscription in Jan 1 Balance b/d 4230 Jan 1 Balance b/d 10620
7,200 ?
advance
5 Trading, Profit and Loss Account
Bank Account (extract) Although the main purpose of the non-profit organisation is not to make
20x2 RM profit, they are also carrying out activities deliberately to make a profit to
Subscription finance the main activities.
Dec 31 3,330
2021
Subscription Some common examples of these are the running of a bar, canteen or
60,570
2022 restaurants, books shop and sport equipment shop etc. so as to make profit.
Subscription
10,620
2023 If a club has a bar, the income statement will show the surplus or deficit on
74,520 its trading. Although the organisation itself does not trade, the bar within
the organisation does, and so it is correct to refer as ‘profit’ from the bar.
The club takes credit for subscription income when it became due, but
takes a prudent view of overdue subscription. Subscription in arrears as Where there is trading activity within a non-profit organisation, the
at 1 January 20x1 still not paid in year 20x2 the overdue amount will be organisation must hold inventories of drink or food, books or other trading
written off in 20x2. goods, it is usual to prepare a trading, profit and loss account for that
particular activity, then the profit or loss is transferred to the Income and
What is the amount should be credited to the income and expenditure expenditure account.
account for the year ended 31 December 20x2?
Activity 5: Club’s trading account
Solution: Best Friend Chess Club has the following information for the year ended 31
Subscription Account December 20x2:
2021 RM 2021 RM
Bal b/d Bar takings - RM162,000
Jan 1 Bal b/d (Arrears) 3680 Jan 1 7,200
(advan) Purchases - RM138,600
Dec Bar expenses - RM5,000
Dec 31 Income & Exp. 71,630 Bank 74520
31 Opening inventories - RM10,800
Subs written- Closing inventories - RM14,400
`` Balance c/d 10620 `` 350
off
`` Balance c/d 4,230 Required:
ABFA2064 FINANCIAL ACCOUNTING III 6 Michelle Tan 2024

Prepare Best Friend Chess Club’s trading account for the year incurred) of the event against the revenue (sale of tickets etc.) to show the
ended 31 December 20x2 surplus or deficit.

7 Balance Sheet (Statement of financial position)

The balance sheet of a non-trading organisation is same as a normal

company. But the term ‘Accumulated Fund’ is used instead of ‘capital’.
No drawings account, surplus will increase the accumulated fund while
Solution: deficit will decrease it.
Best Friend Chess Club 8 Funds of non-profit organisation
Bar Trading Account for the year ended 31 December 20x2
RM RM Although the capital of a non-profit organisation is generally accounted for
Sales 162,000 as the club fund (or accumulated fund), some separate funds might be set
Less: Cost of Goods Sold up for particular purposes and recorded in the balance sheet.
Bar inventories as at 1 January 2022 10,800
A life membership fund is a fund for the money subscribed for life
Bar Purchases 138,60
membership by various members of the organisation. The money paid for
0
life membership is commonly invested outside the organisation, for
149,40 example in the fixed deposit account etc.
0
Less: Bar inventories as at 1 December (14,400 135,000 A building fund might be set up whereby the organisation sets aside money
2022 ) to save for the cost of a new building extension. The money put into the
Gross profit 27,000 fund will be invested outside the organisation, earning interest until it is
Bar expenses 5,000 eventually needed for the building work.
Bar Profit (taken into income and 22,000
expenditure) A specific donation fund may be created for special purpose, such as
building a tennis or badminton court, swimming pool etc.

6 Income and Expenditure Account

Netting off expenditure against income for like items means that where
some sources of income have associated costs, the net surplus or deficit
should be shown in the income and expenditure account.

If a club holds an annual dinner and dance, fun fairs, competition, the
income and expenditure account will be net off the costs (expenses
ABFA2064 FINANCIAL ACCOUNTING III 7 Michelle Tan 2024

On the other hand, the purchase of badminton nets; billiard tables (which
have a long useful life) should be treated as capital expenditure, as these
items would last for several accounting periods.

10. Capital receipts and Revenue receipts

10.1 Entrance fees:

Entrance fees or admission fees, are revenue receipts. But in some cases, it
may be preferable to treat them as capital receipts.
Lecture 4: Accounting for Non-profit Organisation: Clubs,
Societies and Associations (II) Entrance fees may be looked upon as premium paid by new members as
their contribution to the capital costs involved in providing the amenities
● Capital expenditures & revenue expenditure for the members. If treated as a capital item, it will no longer appear in the
● Capital receipts and revenue receipts Income and Expenditure Account but in the Balance Sheet.
● Life time membership
● Trading account, Income and expenditure account, Balance 10.2 Donation:
Sheet of NPO
Donation may also be treated as capital receipts or revenue receipts
depending on whether the donations are for any specific purpose.
9. Capital expenditure and Revenue expenditure
A donation to a swimming pool fund would be capitalised, whereas
Apart from the usual item of capital expenditures such as land and general donations for no specific purpose should be treated as revenue
buildings, fixture and fittings, office equipment etc. A sports club may have receipts.
a swimming pool, billiard table, tennis court and other sports equipment. A
literary society will have a library; a musical association may have their 10.3 Proceeds from event:
musical equipment etc.
The proceeds from a fun fair which is generally a revenue receipt but may
In some cases, there may be difficulty in distinguishing capital expenditure be treated as capital receipt if the fun fair is held for a specific purpose,
from revenue expenditure. such as to provide a fund for the extension of the club house, an addition to
the capital item. If it is raising money just for a charitable institution, then
A general guide would be to treat all those items, which are used up or it would be treated as revenue receipts.
consumed within a short period, such as the purchases of shuttle corks and
tennis balls are revenue expenditure.
Activity 6: Final accounts
ABFA2064 FINANCIAL ACCOUNTING III 8 Michelle Tan 2024

1. One quarter of the clubhouse overheads is apportioned to the

The following is the account of Kelab Cinta Alam. bar.
2. Depreciation of equipment is at 30% on reducing balance.
Receipts and Payments Account for the year ended 31 December 20x1 3. Petty cash is used only for postage and stationery.
RM RM
Balance b/f ? Clubhouse overheads 40,860 Required:
Subscription 50,400 Bar payables 28,620
Bar takings 40,770 Equipment 10,800 (a) Bar trading account for the year ended 31 December 20x1.
Donations 900 Annual dinner 9,630 (b) Income and Expenditure Account for the year ended 31 December
expenses 20x1.
Annual dinner 7,650 Prize expenses 7,785 (c) Balance Sheet as at 31 December 20x1.
tickets
Prize fund 8,730 Petty cash 900
Balance c/d ?

Balance b/d ?

Balances as at 31 December are as follows:

Solution:
20x0 20x1
RM RM Workings:
Equipment at cost 32,400 ?
Accumulated depreciation 12,600 ? W1: Calculate Bar credit purchases
Subscription in advance 1,215 2,160 Bar payables
Subscription in arrears 1,800 2,880 20x1 RM 20x1 RM
Accrued clubhouse overhead 2,142 1,287 Dec Bank 28,620 Jan 1 Balance b/d 5,850
Prepaid clubhouse overhead 900 513 31
Prize inventories 2,700 2,943 Balance c/d 6,552 Dec Purchases 29,322
Bar inventories 7,020 4,887 31
Bar payables 5,850 6,552 35,172 35,172
Prize fund 14,400 ? 20x2
Petty cash 270 459 Jan 1 Balance b/d 6,552
Bank balance 9,270 ?

W2: Clubhouse overheads

Additional information: Clubhouse overheads
20x1 RM 20x1 RM
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Jan 1 Balance b/d 900 Jan 1 Bal b/d (accrual) 2,142 `` Balance c/d 2,160 `` Balance c/d 2,880
Dec Bank 40860 Dec Bar Trading ¼ 10,09 54,49 54,495
31 31 8 5
`` Balance c/d 1287 `` Income & Exp. ¾ 30,29 2022 2022
4 Jan 1 Balance b/d 2,880 Jan 1 Balance b/d 2,160
`` Balance c/d 513 (Arrears)) (Advance)
43,047 43,04
7
20x2 20x2 W4: Profit and Loss from the annual dinner
Jan 1 Balance b/d 513 Jan 1 Balance b/d 1,287 RM
Receipts: Annual dinner tickets 7650
(a) Less: Payments for the dinner (9630)
Kelab Cinta Alam Profit / (Loss) from the annual dinner (1980)
Bar Trading, Profit and Loss Account for the year ended 31 December
20x1
RM RM
Bar takings 40,770 W5: Postage and Stationery expenses
Less Cost of Sales Petty Cash
: 2021 RM 2021 RM
Opening Inventories 7020 Jan 1 Balance b/d 270 Dec Postage & 711
Add: Purchases[W1] 29322 31 Stationery
36342 Dec Receipt & 900 `` Balance c/d 459
Less: Closing Inventories (4887) 31445 31 Payments
Bar Gross Profit 9315 1170 1170
Less: Clubhouse overhead (10,098 2022
[W2] ) Jan 1 Balance b/d 459
Net Profit / (Loss) (783)
W6: Depreciation
RM
W3: Subscription Cost of Equipment ( RM32,400 + RM10,800 ) 43,200
Subscription Account Less: Accumulated Depreciation as at 1 January 2021 12,600
2021 RM 2021 RM Net book value 30,600
Jan 1 Balance (arrears) 1,800 Jan 1 Balance 1,215 Current year depreciation (30% x RM30,600 ) 9,180
(advance)
Dec Income and 50,53 Dec Bank 50,400 W7: Prize inventories consumed
31 Expend. 5 31 RM
ABFA2064 FINANCIAL ACCOUNTING III 10 Michelle Tan 2024

Inventories as at 1 January 2021 2,700

Purchases during the year 7,785
10,48 (b)
5
Less: Inventories as at 31 December 2021 2,943 Kelab Cinta Alam
Prize inventories consumed 7,542 Income and Expenditure Account for the year ended 31 December 20x1
RM RM
W8: Cash and bank balance Income:
= 9,270 Subscription [W3] 50,535
+ (50,400 + 40,770 + 900 + 7,650 +8,730) Donations 900 51,435
- (40,860 + 28,620 + 10,800 + 9,630 +7,785 +
900) Expenditure:
= 19,125 Bar Loss 783
[W2]
W9: Accumulated fund as at 1 January 20x1 Loss from annual dinner 1980
[W4]
Statement of Affairs as at 1 January 20x1 Clubhouse overhead 30294
RM RM [W2]
Assets: Postage and stationery 711
Equipment 32,400 [W5]
Less: Accumulated depreciation 12,600 19,800 Depreciation on equipment 9,180
Subscription in arrears 1800 [W6]
Prepayment: Clubhouse overheads 900 Surplus of income over 8,487
Prize inventories 2,700 expenditure
Bar inventories 7,020
Petty cash 270
Cash and bank balances 9270 (c)
21,960 Kelab Cinta Alam
41,760 Balance Sheet as at 31 December 20x1
Less: Liabilities RM RM
Subscription in advance 1,215 Non-current assets
Accruals: Clubhouse overheads 2,142 Equipment (32,400 + 10,800) 43,200
Bar payables 5,850 Less: Depreciation (12,600 + (21,780 21,42
Prize fund 14,400 23,607 9,180) ) 0
Accumulated fund as at 1 January 18,153
20x1 Current assets
Bar inventories 4,887
ABFA2064 FINANCIAL ACCOUNTING III 11 Michelle Tan 2024

Prize inventories 2,943

Prepayments: Clubhouse
overheads
Subscription in arrears
Cash and bank balances
Petty cash
Represented by:
Accumulated fund:
As at 1 January 2021(W9)
Add: Surplus (Fr I&E)
As at 31 December 2021
Prize fund:
As at 1 January 2021
Add: Collection for the year
Less: Prize consumed
As at 31 December 2021
Current Liabilities
Payables
Subscription in advance
Accruals
513 ▪ Some clubs offer membership for life in return for a given lump sum
subscription. Life members paid this initial lump sum, do not have to
2,880 pay any further annual subscriptions.
19,125
459 30,80 ▪ In return, the club receives a sum of money, which it can then invest,
7 with the annual interest from these investments being accounted for
52,22 as income in the income statement.
7
▪ The ‘once-and-for-all’ payments from life members are not income
relating to the year in which they are receive by the club, because
the payment is for the life of the members, which can of course be a
18,153
very long time to come.
8,487
26,64
0 ▪ Because they are long-term payments, they are recorded in the club
accounts as an addition to a life membership fund.
14,400 ▪ Life member enjoys the benefits of membership over their life, and
8,730 their payment to the club is ‘rewarded’ as time goes by.
23,130
7,542 Accounting for life membership over time
15,58
8 ▪ The life membership fund is shown in the balance sheet of the club
or society, immediately after the accumulated fund. Then, write-
off subscription to the life membership fund by transferring a ‘fair’
amount from the fund to the income statement.
6,552
2,160 ▪ A ‘fair’ amount estimated would represent the proportion of the total
1,287 9,999 life membership payment which relates to the current year.
52,22
7 Activity 7: Life membership fee

The Creative Bowling Club has a scheme for members to pay a lump
sum which give them membership for life. Amount received are held in
11 Life membership
 ABFA2064 FINANCIAL ACCOUNTING III 12 Michelle Tan 2024

a life membership fund, then credited to income statement in an equal balance

instalment over a ten-years period, commencing in the year of received. New 7,500 ÷ 10 750
Balance c/d 26,250
At the year ended 31 December 20x0, the balance on the life 31,500 31,500
membership fund was RM24,000. During the year ended 31 December 20x2
20x1, RM4,500 of this opening balance should be credited as income Jan 1 Balance b/d 26,250
for the current year. New life members made a lump sum payment
totalling RM7,500.
Activity 8: Comprehensive question
Required:
Show the movements in the life membership fund for the year ended 31 Best Fun Holiday Club has provided you the following information for the
December 20x1. year ended 30 April 20x2:
Debit Credit
Solution: RM RM
Life membership fund RM RM Bar takings 135,00
As at 1 January 20x1 24,000 0
New life membership subscription received 7,500 Subscription – arrears and in advance at 1 May 6,000 14,400
31,500 20x1
Less: transfer to income statement Bar purchases 72,000
From opening balance 4,500 Bar staff’s salary 25,200
From new membership 7,500 ÷ Bar inventories as at 1 May 20x1 27,000
750 5,250
10 Donation to charitable organisation 18,000
Motor vehicles at cost 600,000
As at 31 December 20x1 26,250 Accumulated depreciation for motor vehicles 120,00
0
Income Statement (extract) RM 12% long term loan 100,00
Income from life membership 5,250 0
Rent and rates 30,000
Balance Sheet (extract) RM Utilities 24,000
Accumulated fund X Receipts from annual dinner 171,00
Life membership fund 26,250 0
Printing cost for annual dinner invitation card 13,800
Life Membership Fees Miscellaneous expenses 7,200
20x1 RM 20x1 RM Annual dinner cost 75,000
Dec 31 Income & Exp. 4,500 Jan 1 Balance b/d 24,000 Bank 45,000
Existing Dec 31 Bank 7,500 Accumulated fund as at 1 May 20x1 402,80
0
ABFA2064 FINANCIAL ACCOUNTING III 13 Michelle Tan 2024

943,200 943,20 20x1 RM 20x1 RM

0 May 1 Balance 6,000 May 1 Balance b/d 14,400
b/d
Additional information: 20x2 20x2
(i) Bar inventories as at 30 April 20x2 was RM36,000. Apr Inc. & 490,20 Apr 30 Bank 480,00
(ii) The depreciation policy for motor vehicles is 20% straight line 30 Exp. 0 0
method. `` Balance 4,800 `` Balance c/d 6,600
(iii) Total subscription received from members were RM480,000 but this c/d
amount is not reflected in the bank account above yet. At the end of 501,00 501,00
the year, there is still RM6,600 owing by the members and RM4,800 0 0
was being paid in advance by the members. May 1 Balance 6,600 May 1 Balance b/d 4,800
(iv) Miscellaneous expenses accrued were RM1,800. b/d

Required: W2: Surplus from annual dinner = Dinner receipts - dinner

(a) Prepare the Bar Trading Account, Income and expenditure account cost - cards
for Best Fun Holiday Club for the year ended 30 April 2022. =
(b) Prepare a Balance Sheet as at that date. RM171,000 – RM75,000 – RM13,800

Best Fun Holiday Club = RM82,200

Bar Trading Account for the year ended 30 April 2022
RM RM Best Fun Holiday Club
Bar takings 135,000 Income and expenditure Account for the year ended 30 April 20x2
Cost of Goods Sold RM RM
Bar inventories as at 1 May 2021 27,000 Income
Add: Bar Purchases 72,000 Bar Profit 46,800
99,000 Subscription received 490,20
Less: Bar inventories as at 30 April (36,000) 63,000 [W1] 0
2022 Surplus from annual dinner [W2] 82,200
Gross profit 72,000 619,20
Less: Expenses 0
Bar staff salary 25,200
Bar Profit 46,800 Less: Expenditure
Donation 18,000
Rent and rates 30,000
W1: Subscription Utilities 24,000
Subscription Received Account Miscellaneous (7,200 + 9,000
1,800)
ABFA2064 FINANCIAL ACCOUNTING III 14 Michelle Tan 2024

Depreciation for motor vehicles 20% 120,00 Non-current liability

0 Long term loan 100,00
Interest on loan (12% x 100,000) 12,000 213,00 0
0 909,00
Surplus for the year 406,20 0
0 Current liabilities
Subscription in advance 4,800
Accrued interest on loan 12,000
Accrued Misc. expenses 1,800 18,600
927,60
0

Best Fun Holiday Club

Balance Sheet as at 30 April 20x2
RM RM
Non-current assets
Motor vehicle 600,000
Less: Accumulated depreciation (240,000 360,00
) 0

Current assets
Bar Inventories 36,000
Subscription in arrears 6,600
Bank (45,000 + 480,000) 525,000 567,60
0
927,60
0

Accumulated fund 402,80

0
Surplus for the year 406,20
0
809,00
0