The following financial records relate to Beacon Welfare Society for the year ended 31st December 2025:
| Transaction / Financial Item | Amount (₦) |
|---|---|
| Cash balance at 1st January 2025 | 45,000 |
| Subscriptions received | 185,000 |
| Rent paid | 50,000 |
| Donations received | 60,000 |
| Printing and stationery paid | 12,000 |
| Purchase of office furniture | 80,000 |
| Proceeds from fundraising dinner | 40,000 |
| Sale of old office equipment | 25,000 |
| General administrative expenses paid | 34,000 |
| Electricity bill paid | 18,000 |
| Depreciation on office furniture | 8,000 |
| Outstanding rent at 31st December 2025 | 5,000 |
| Subscriptions in arrears at 31st December 2025 | 15,000 |
What is the closing cash and bank balance of Beacon Welfare Society to be recorded in the Receipts and Payments Account as at 31st December 2025?
Cevap: 161000 ₦
Cevap
The closing cash and bank balance of Beacon Welfare Society as at 31st December 2025 is ₦161,000.
The Receipts and Payments Account is a summary of the cash book for a non-profit organization. It records all cash received (opening cash balance of ₦45,000 + cash receipts of ₦185,000 + ₦60,000 + ₦40,000 + ₦25,000 = ₦355,000) and all cash payments (₦50,000 + ₦12,000 + ₦80,000 + ₦34,000 + ₦18,000 = ₦194,000). Both capital and revenue cash items are included. Non-cash items such as depreciation (₦8,000), outstanding rent (₦5,000), and subscriptions in arrears (₦15,000) are excluded. Subtracting total cash payments from total cash receipts gives the closing cash balance of ₦161,000.
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Receipts and Payments Account Scope and Cash Basis