At 1 January 2025, Progressive Scholars Club held the following financial positions:
| Item | Amount (₦) |
|---|---|
| Clubhouse building | 500,000 |
| Equipment | 120,000 |
| Cash at bank | 45,000 |
| Subscriptions received in advance | 15,000 |
| Accrued electricity bill | 10,000 |
What is the value of the club's accumulated fund at 1 January 2025 in Naira?
Answer: 640000 ₦
Answer
The accumulated fund of Progressive Scholars Club at 1 January 2025 is ₦640,000.
The accumulated fund of a non-profit organization equals Total Assets minus Total Liabilities at a given date. Adding the clubhouse building (₦500,000), equipment (₦120,000), and cash at bank (₦45,000) gives total assets of ₦665,000. Adding subscriptions received in advance (₦15,000) and accrued electricity (₦10,000) gives total liabilities of ₦25,000. Subtracting total liabilities from total assets gives ₦665,000 - ₦25,000 = ₦640,000.
Step-by-Step Solution
Key Concept
Calculation of Accumulated Fund