The following balances were extracted from the books of Unity Town Development Union on 1st January 2025:
| Item | Amount (₦) |
|---|---|
| Civic Hall Building | 1,200,000 |
| Furniture and Equipment | 350,000 |
| Cash at Bank | 180,000 |
| Subscriptions in Arrears | 25,000 |
| Prepaid Hall Insurance | 15,000 |
| Accrued Electricity Bills | 40,000 |
| Subscriptions Received in Advance | 30,000 |
What is the value of the union's Accumulated Fund as of 1st January 2025?
- ₦1,700,000Answer
- B₦1,710,000
- C₦1,840,000
- D₦1,730,000
Answer
The Accumulated Fund of Unity Town Development Union as of 1st January 2025 is ₦1,700,000.
The accumulated fund is determined by computing the net value of total assets over total liabilities at a specific date. Summing the assets gives ₦1,200,000 + ₦350,000 + ₦180,000 + ₦25,000 + ₦15,000 = ₦1,770,000. Summing liabilities yields ₦40,000 + ₦30,000 = ₦70,000. Subtracting liabilities from assets results in ₦1,770,000 - ₦70,000 = ₦1,700,000.
Step-by-Step Solution
Key Concept
Calculation of Accumulated Fund in Non-Profit Accounting
Estimated Time:1m 30s