Match each financial item of a non-profit organization listed in Column A with its appropriate accounting treatment regarding the Income and Expenditure Account listed in Column B.
- Honorarium paid to an invited guest speakerDebited directly to the Income and Expenditure Account as a revenue expense
- Gain realized on the sale of old club equipmentCredited to the Income and Expenditure Account as revenue income
- Special donation received specifically for building a new clubhouseExcluded from the Income and Expenditure Account and added directly to a specific Capital Fund on the Balance Sheet
- Subscriptions collected during the year pertaining to the subsequent financial periodExcluded from the Income and Expenditure Account and recorded as a current liability on the Balance Sheet
Cevap
Honorarium paid is debited to Income & Expenditure as a revenue expense; gain on sale of equipment is credited to Income & Expenditure as revenue income; special donation for building is capitalized directly to a specific fund on the Balance Sheet; subscriptions collected in advance are recorded as a current liability on the Balance Sheet.
Each item is matched according to standard double-entry principles for non-profit entities: recurring operational payments (honorarium) are debited to Income & Expenditure; net gain on fixed asset disposal is credited to Income & Expenditure; purpose-specific capital receipts (building donation) are capitalized to specific funds on the Balance Sheet; and unearned subscription income is carried forward as a current liability on the Balance Sheet.
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Anahtar Kavram
Distinction between Revenue and Capital Items in Non-Profit Organization Accounts