The following financial positions were extracted from the books of Lakeside Recreation Association as at 1st January 2025:
| Item | Amount (₦) |
|---|---|
| Clubhouse premises | 1,200,000 |
| Equipment and furniture | 650,000 |
| Cash at bank | 180,000 |
| Bar inventory | 45,000 |
| Subscriptions due but unpaid | 35,000 |
| Subscriptions received in advance | 20,000 |
| Outstanding electricity bill | 15,000 |
| Bar creditors | 25,000 |
What is the Accumulated Fund of the association as at 1st January 2025 in Naira (₦)?
Answer: 2050000 ₦
Answer
The Accumulated Fund of Lakeside Recreation Association as at 1st January 2025 is ₦2,050,000.
The Accumulated Fund is calculated by subtracting total liabilities from total assets at the start of the financial period. Adding the assets gives: Clubhouse premises (₦1,200,000) + Equipment and furniture (₦650,000) + Cash at bank (₦180,000) + Bar inventory (₦45,000) + Subscriptions due but unpaid (₦35,000) = ₦2,110,000. Summing the liabilities gives: Subscriptions received in advance (₦20,000) + Outstanding electricity bill (₦15,000) + Bar creditors (₦25,000) = ₦60,000. Subtracting liabilities from assets yields ₦2,110,000 - ₦60,000 = ₦2,050,000.
Step-by-Step Solution
Key Concept
Calculation of Accumulated Fund for Non-Profit Organizations