THE INSTITUTE OF FINANCE MANAGEMENT

NON PROFIT ORGANISATION- TUTORIAL QUESTIONS

QUESTION ONE
ABC Sport Club produced the following information relating to the Clubs financial year ended 31
May 2014
Receipts and Payments Account for the year ended 31 May 2014
TZS TZS
Balance at bank at 1 Jun 2013 1,076,000 Groundsmen wages 18,500,000
Sales of refresments 7,160,000 Purchase of refreshments 3.110,000
Subscriptions 70,066,000 Wages of refreshment staff 3,700,000
Social events- receipts 19,240,000 Repairs & renewals 21,240,000
Sports equipment, Dec 2013 30,000,000
Insurance 1,500,000
Rates 500,000
Telephone 222,000
Light & heat 368,000
Expenses of social events 15,110,000
Balance @ bank at 31 May 2014 3,292,000
97,542,000 97,542,000
Additional information:
31 May 31 May
2013 2014
Subscriptions in advance 100,000 450,000
Subscriptions in arrears 1,230,000 1,340,000
Rates prepaid 60,000 70,000
Insurance prepaid 210,000 340,000
Light & heat accrued 67,000 98,000
Sports equipment at net book value 15,000,000 ?
Sports equipment is to be depreciated at 31 May 2014 on the reducing balance basis at the rate of
30% per annum, charging a full years depreciation in the year of purchase.
Required:
Prepare the following Ledger Accounts, posting the necessary adjustment and showing the
transfer to the statement of Income and Expenditure for the year ended at 31 May 2014:

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 a) Subscriptions
b) Rates
c) Insurance
d) Light and Heat
e) Sport Equipment
f) Prepare statement of Income and Expenditure and balance sheet

QUESTION TWO

The following statement has been prepared for the XYZ Social Club:
Receipts and Payments Account for the year ended 30 April 2014
TZS TZS
Balance at bank at 1 May
1,950,000 Payment for food and drink 6,320,000
2013
Subscriptions 4,975,000 Wages 8,790,000
Cafeteria takings 11,860,000 New furniture 600,000
Receipt from members for
10,900,000 Insurance 430,000
trip to Bangkok
Letting of club premises 3,100,000 Annual social expenses 760,000
Sale of tickets-annual social 720,000 Lighting and heating 510,000
Purchase of new video machine 420,000
Publicity expenses 335,000
Expenditure for trip to
10,650,000
Bangkok
General Expenses 215,000
Repairs & maintenance 870,000
Balance at bank at 30 April
3,605,000
2007
33,505,000 33,505,000
Following additional information at 1 May 2013

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 TZS
Club premises, valued at cost 32,000,000
Furniture 1,800,000
Equipment(including old video machine valued at TZS
860,000
40,000)
Stock of food and drink 1,800,000
Insurance prepaid 40,000
Creditors for food and drink 165,000
Lighting and heating accrued 130,000
Subscriptions: in arrears(paid in May 2013) 170,000
Subscription : in advance 120,000
Following additional information at 30 April 2014
TZS
Stock of food and drink 1,650,000
Creditors for food and drink 470,000
Insurance prepaid 55,000
Lighting and heating accrued 110,000
Subscriptions in arrears 290,000
Subscription in advance 90,000
During the year, the club wrote off the old video machine. Depreciation is calculated at
25% of the book value of furniture and equipment at 30 April 2014. Charge 60% of wages
to the cafeteria.

Required:

(a) Calculate the Accumulated Fund at 1 May 2013

(b) Prepare the Cafeteria Account for the year ended 30 April 2014

(c) Prepare the Income and Expenditure Account for the year ended 30 April 2014

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 (d) Prepare the Balance Sheet at 30 April 2014

QUESTION THREE

Kwetu Mbalizi Dispensary had the following Income and Expenditure statement for the year 2011

INCOME TZS
Subscriptions 25,000,000
Interest 9,000,000
Donations 4,000,000
Miscellaneous Receipts 300,000
TOTAL INCOME 38,300,000
LESS:EXPENDITURES
Salaries 23,500,000
Surgery and Dispensary 3,000,000
Insurance 200,000
Office expenses 800,000
Depreciation -Building 3,750,000
Furniture 120,000
Instruments 100,000
Rent 500,000
Surplus of Income over Expenditure 6,330,000

Other information is as follows:

31.12.2010 31.12.2011
TZS TZS
Cash in hand and at Bank 18,700,000
Government securities (face value TZS 200,000,000) 180,000,000 180,000,000
Subscriptions Outstanding 7,000,000 10,000,000
Subscriptions Received in Advance 200,000 600,000
Furniture 2,000,000 1,980,000
Land and Buildings 200,000,000 196,250,000
Instruments 3,500,000 3,900,000
Surgery Expenses due 200,000 300,000
Salaries Unpaid 1,000,000 1,500,000
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 Stock of Medicine 300,000 100,000

REQUIRED

I. Prepare The Receipts and Payments account for the year ended 31st December 2011

II. Prepare The Statement of Financial Position (SFP) as at 31st December 2011

QUESTION FOUR
From the following Receipts and payment Account of a club and from the information supplied,
prepare
the Income and Expenditure Account for the year ended 31st December, 2012 and balance sheet as
at that.

Receipts and Payments Account

for the year ended 31st December, 2012
Dr. Cr.
TZS. TZS.
Balance b/d 250,000 Salaries 1,200,000
Subscriptions for 2011 250,000 General Expenses 300,000
2012 1,000,000 Electric Charges 200,000
2013 200,000 Books 100,000
Sale of old Furniture costing TZS., 100,000 60,000 News Papers 400,000
Rent received from use of Hall 740,000 Postage 50,000
Profit from Entertainment 400,000 Furniture 250,000
Sale of News Papers 100,000 Balance c/d 500,000
3,000,000 3,000,000

Information:
a) The club has 50 members each paying an annual subscription of TZS. 25,000/- Subscription
outstanding On 31st December, 2011 were TZS. 300,000/-
b) On 31st December, 2012 salaries outstanding amounted TZS. 100,000. Salaries paid included
TZS. 100,000, for the year 2013.
c) On 1.1.2012, the Club owned land & Building valued at TZS. 16,300,000 Furniture TZS.
600,000 and Books TZS.500,000.
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QUESTION FIVE

The following is made available to you in respect of Hamzizo Sports Club:

RECEIPT AND PAYMENT ACCOUNT

TZS TZS
balance b/f:- 319,000 Rent and rates 168,000
Entrance fees 255,000 Wages 245,000
Subscriptions 1,600,000 Lighting charges 72,000
Donations 165,000 Lecturer’s fees 435,000
Life membership fees 250,000 Books 213,000
Interest on fixed deposit 14,000 Office expenses 450,000
Placed on 3% fixed deposit 1st
Profit on entertainment 42,000 July 2014 800,000

Balance c/d:cash in hand 20,000

Cash at bank 242,000
2,645,000 2,645,000

Additional information:

a) In the beginning of the year the club possessed books worth TZS 2,000,000 and furniture
worth 850,000.
b) Subscription in arrears at the beginning of the year amounted to TZS 35,000 and at the end
of the year TZS 45,000
c) Six months rent TZS 60,000 was due both at the beginning of the year and at the end of the
year.
d) Depreciation on furniture is TZS 50,000 and depreciation on books is TZS 113,000
e) Life membership is to be capitalized.
f) Donation is general of a small amount.

REQUIRED:

a) prepare income and expenditure Account for the year ended 31st December 2014
b) Balance sheet as at that date

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 QUESTION SIX

Below is the trial balance for Star Sports Club for the year ended 30 June 2010.

Dr Cr
TZ TZS
Equipment 14,000,000
Premises 6,000,000
Bar Sales 16,300,000
Bar Purchases 9,500,000
Bar stock 1.07.10 2,200,000
Bank 2,800,000
Subscription received 8,700,000
Accumulated fund 1.07.10 22,500,000
Secretary pay 3,100,000
Staff wages 5,300,000
Telephone 900,000
Furniture 1,300,000
Rent and rates 1,500,000
Cash 75,000
Ground maintenance 700,000
expense
Window Cleaning 125,000 ________
47,500,000 47,500,000

Notes: at 30 June 2010

a) Bar stocks TZS 2,500,000.

b) Subscription in arrears amounted to TZS 100,000.
c) Rates prepaid TZS 70,000.
d) Depreciation – Equipment TZS 600,000 and furniture TZS 150,000.

Required:
Prepare the receipts and payment account, the bar trading account, and the income and
expenditure account for the year ended 30 June 2010.

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QUESTION SEVEN

Sallender Sports and Social Club Receipts and Payments for the year ended 31/12/04
Receipts TZS Payments TZS
Cash in hand 01/01/04 2,961,000 Bar purchases 38,546,000
Interest 1,399,000 Purchase of equipment 19,038,000
Subscriptions 35,176,000 General expenses 25,686,000
Bar sales 72,704,000 Competition costs 3,992,000
Competition receipts 2,216,000 Cash balance 31/12/04 27,194,000
114,456,000 114,456,000

Other balances as at 01/01/04

Land and buildings 120,885,000
Machinery and Equipment 23,420,000
Bar stock 4,172,000
Investments 24,981,000
General expenses owing 641,000
Subscriptions due 1,433,000

Additional information as at 31/12/04

Bar stock 2,648,000
Bar creditors 281,000
General expenses prepaid 274,000
Subscriptions prepaid 1,596,000
Machinery and Equipment held on 31/8/2003 to be depreciated by 12%

Required:

a. Prepare a statement showing the club's accumulated fund at 01/01/04

b. Prepare the club's income and expenditure account for the year ended 31/12/04
c. Prepare the club's balance sheet as at 31/12/04
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QUESTION EIGHT

IFM Sports and Social Club - Receipts and Payments for the year ended 31/08/04
Receipts TZS TZS
Cash in hand 01/09/03 3,000,000 Bar purchases 24,000,000
Interest 1,500,000 Purchase of equipment 20,000,000
Subscriptions 36,000,000 General expenses 26,000,000
Bar sales 50,000,000 Competition costs 3,000,000
Competition receipts 2,000,000 Cash balance 31/08/04 19,500,000
92,500,000 92,500,000

Other Balances as at 01/09/03

Clubhouse and land 100,000,000
Equipment 25,000,000
Bar stock 4,000,000
Investments 20,000,000
General expenses owing 500,000
Subscriptions due 1,000,000

Additional information as at 31/08/04

Bar stock 6,000,000
Bar creditors 400,000
General expenses prepaid 300,000
Subscriptions prepaid 900,000
Equipment held on 31/08/03 to be depreciated by 20%

Required

a. Prepare a statement showing the club's accumulated fund at 01/09/03

b. Prepare the club's income and expenditure account for the year ended 31/08/04
c. Prepare the club's balance sheet as at 31/08/04
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QUESTION NINE
Phoenix Boxing club is based in Morogoro and it deals with teaching and preparing competitions
for boxing in the region. Also in order to raise extra income to run the club, it has a restaurant
operating nearby the club’s premises. The club had the following assets on 1st January 2014;

Cash at bank…………………………………………………………….…… TZS. 400,000

Restaurant food stocks………………………………………………………..TZS. 1,600,000
Club Buildings……………………………………………………………… .TZS. 25,000,000
During the year ended 31st December 2014, the club had the following receipts and payment
account;
Phoenix Boxing Club
Receipt and Payment Account for the year ended 31st December 2014
Receipts Payments
Subscription for 2008 7,000,000 Rent and rates 3,000,000
Subscription for 2015 760,000 Extension to club buildings 16,000,000
Restaurant income 12,000,000 Restaurant purchases 7,500,000
Visitor’s fees 1,300,000 Secretarial expenses 480,000
Bank loan 11,000,000 Interest on loan 520,000
Competition fees 1,640,000 Restaurant expenses 1,200,000
Equipment 4,000,000
Balance c/d 1,000,000
33,700,000 33,700,000

The other information are as follows;

The restaurant food stock on 31st December 2014 was TZS 1,800,000
The equipment is depreciated at 20% straight line on cost
REQUIRED:
a) Prepare balance sheet as at 1stJanuary 2014.(find accumulated fund)
b) Restaurant’s income statement for that year
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c) Prepare income and expenditure for the year ended 31st December 2014
d) Prepare the statement of financial position as at 31st December 2014.

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