1 / 18

ACCOUNTING FOR NON PROFIT ORGANIZATION

By : Wan Maimunah Wan Ishak Commerce Dept Tel : 09-5655300 ext 436. ACCOUNTING FOR NON PROFIT ORGANIZATION. At the end of this chapter, students should be able to : Understand the non profit organization Identify receipts and expenditure of NPO Understand special activities run by NPO

devaki
Download Presentation

ACCOUNTING FOR NON PROFIT ORGANIZATION

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. By : Wan Maimunah Wan Ishak Commerce Dept Tel : 09-5655300 ext 436 ACCOUNTING FOR NON PROFIT ORGANIZATION

  2. At the end of this chapter, students should be able to : • Understand the non profit organization • Identify receipts and expenditure of NPO • Understand special activities run by NPO • Produce accounting records for NPO

  3. What is Non Profit Organization ? • Club & Society • Main purpose : to provide facilities to the members ( not profit making) • Example : ?? • Recommendation : Refer to some website of any club & society in Malaysia to have some overview of activities of any club & society

  4. Cont : • Financial statement need to be presented in AGM • Items of Financial Statement : • Revenue & Payment Account • Income & Expenditure Account • Balance Sheet

  5. Items of Financial Statement :

  6. Items of Financial Statement : cont

  7. Example :

  8. Example :

  9. Receipts & Payment Account - to show cash in inflow & cash outflow- Similar to cash book in businesses- refer example 4.3 pg 112Receipts and Payment Account for the Year Ended 31 Dec 20XX

  10. Income & Expenditure Account - Capital revenue & capital expenditure WILL NOT be recorded in I&E Ac- Similar to P&L in businesses- refer example 4.4 pg 113Income & Expenditure account for the Year Ended 31 Dec 20XX

  11. Fee Account - Fee – main sources of income for a club/society- Need to be adjusted Fee A/c I&E – revenue item BS – current liability BS – current asset

  12. Exercise : Preparing fee a/c

  13. Exercise : Preparing fee a/c

  14. Enhance your understanding : Question 1 :Info. Of Recreation Club as at 31 Mac 2009 :Summary of Receipts & Payments :Receipts :Ticket sales 2,650Membership Fee 1,200Whole Life Fee 850Profit on sale 315Payments :Purchase of equipment ( 1 August 2008) 600Rent 300Printing & Stationery 120Organizer’s expenses 160Maintenance Expenses 60Security Guard 520Miscellaneous expenses 55

  15. cont : Additional info :1. Opening Balance of cash RM 1802. Opening balance of equipment ( 1 April 2008) RM 5003. Unearned as at 31 Mac 2009 RM 4004. Whole Life Fee will be apportioned as income in 5 years5. Depreciation expenses for equipment 20% 6. Prepaid rent as at 31 Mac 2009 is RM 607. Printing expenses are accrued as at 31 Mac 2009 for RM 30Prepare :a). Fee Accountb). Income & Expenditure fye 31 Mac 2009c). Balance Sheet

  16. Check your answer : Fee A/cUnearned b/f - Advance b/f -Income & Expenditure 1600 Cash 1200Advance c/f - Unearned c/f 400

  17. Income & Expenditure A/c fye 31/3/ Rent 240 Profit from sales 315 Printing & Stationery 150 Ticket sales 2650 Organizer’s expenses 160 Fee 1600 Maintenance 60Whole life fee 170 Salaries 520 Misc 55 Depre-equipment180 Surplus3370 47354735 Solution : How did this figure derived ??

  18. Balance Sheet as at ……….. Non Current Asset : Equipment 1100 Accu. Depre(180) 920 Current Asset : Unearned fee 400 Prepaid rent 60 Cash 3380 3840 Current Liab : Printing (30) 3810 4730 Solution :

More Related