- 20 Marks
FA – Nov 2015 – L1 – Q2 – Preparation of not-for-profit accounts | The IASB’s Conceptual Framework
Define IFRS Foundation, list its objectives, and prepare accounting statements for a not-for-profit club.
Question
(a) What is International Financial Reporting Standard (IFRS) foundation? Mention two (2) objectives of the foundation. (5 marks)
(b) The following information relates to “God will Provide” Youth Club for the accounting period of 2014.
- Subscription owing for 2014: GH¢40,000
- Payable for End of Year Party: GH¢1,500
- Payables for Repairs – Equipment: GH¢1,000
- Payables for Repairs – Vehicle: GH¢2,000
Payments:
- Vehicle running Expenses: GH¢6,000
- Electricity Expenses: GH¢3,000
- End of Year Party Expenses: GH¢10,000
- Salaries and Wages: GH¢25,000
- Printing and Stationery: GH¢3,000
- Cleaning Expenses: GH¢6,000
Receipts:
- Car Park Renting: GH¢10,000
- Sales of Party Tickets: GH¢6,000
- Donation from friends of the club: GH¢15,000
Subscription Received:
- 2013: GH¢6,000
- 2014: GH¢30,000
Additional Information:
i. Cash in hand as at 01/01/14: GH¢18,000
ii. Subscription owing as at 01/01/14: GH¢8,000
iii. Any subscription outstanding is written off in the following year if it is not paid.
You are required to prepare:
i. Receipts and Payments Account for the year ended 31st December, 2014 (5 marks)
ii. Subscription Account (3 marks)
iii. Income and Expenditure for the year ended 31st December, 2014 (7 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Accounting Statements, Financial Reporting, IFRS Foundation, Not-for-profit, Objectives
- Level: Level 1
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