The following financial records relate to Apex Professional Forum for the year ended 31st December 2025:
| Transaction / Item | Amount (₦) |
|---|---|
| Cash balance at 1st January 2025 | 45,000 |
| Bank overdraft at 1st January 2025 | 12,000 |
| Subscriptions received (including ₦20,000 for 2024 and ₦15,000 for 2026) | 280,000 |
| Life membership fees received | 60,000 |
| Building fund donation received | 150,000 |
| Proceeds from sale of old office equipment | 25,000 |
| Rent paid (including ₦10,000 prepaid for 2026) | 90,000 |
| Salaries paid | 140,000 |
| Purchase of new office furniture | 80,000 |
| General administrative expenses paid | 35,000 |
Additional Information:
- Depreciation on office equipment for the year was ₦18,000.
- Salaries accrued and unpaid at 31st December 2025 amounted to ₦15,000.
- Subscriptions in arrears at 31st December 2025 were ₦25,000.
What is the closing cash and bank balance to be presented in the Receipts and Payments Account as at 31st December 2025?
- ₦203,000Answer
- B₦185,000
- C₦193,000
- D₦53,000
Answer
The closing cash and bank balance is ₦203,000.
The correct answer is calculated by taking the net opening balance (₦45,000 cash minus ₦12,000 overdraft = ₦33,000 debit), adding all cash receipts (₦280,000 subscriptions + ₦60,000 life membership + ₦150,000 building donation + ₦25,000 equipment sale = ₦515,000), and deducting all cash payments (₦90,000 rent + ₦140,000 salaries + ₦80,000 furniture + ₦35,000 general expenses = ₦345,000), giving a final balance of ₦203,000. Non-cash expenses like depreciation (₦18,000) and accrual adjustments are strictly excluded.
Step-by-Step Solution
Key Concept
Scope and preparation of the Receipts and Payments Account in non-profit organizations
Estimated Time:2m 0s