By :
Wan Maimunah Wan Ishak
Commerce Dept
Tel : 09-5655300 ext 436

1.
2.
3.
4.
At the end of this chapter, students should be
able to :
Understand the non profit organization
Identify receipts and expenditure of NPO
Understand special activities run by NPO
Produce accounting records for NPO




Club & Society
Main purpose : to provide facilities to the
members ( not profit making)
Example : ??
Recommendation :
Refer to some website of any club & society in
Malaysia to have some overview of activities of any
club & society
Financial statement need to be presented in
AGM
 Items of Financial Statement :
1. Revenue & Payment Account
2. Income & Expenditure Account
3. Balance Sheet

Capital
Revenue
Income
Revenue
Membership Fee
Contribution for
special purposes
Entrance Fee
Small amount of
donation
Capital
Expenses
Fund of certain
project
Buying of Non
Current Asset
Income
Expenses
All expenses spent
for that NPO
Example :
Transaction
Revenue
Capital
Laundry
Honorarium
Interest on fixed deposit
Gift
Competition Fee
Entrance Fee
Utilities
Maintenance Fee
Purchase of furniture
Premises Rent
Donation for club fund
Donation to build
swimming pool
Expenses
Income
Capital
Income
Example :
Transaction
Revenue
Capital
Donation
Annual Fee
Purchase of sport equipment
Sales of old furniture
Insurance
Donation to grannies house
Stamp
Repair club premises
Donation to build parking lot
Salary of club’s clerk
Lawyer fee to buy premise
Dividend from investment
Expenses
Income
Capital
Income
Receipts & Payment Account
Particulars
RM
Particulars
RM
Bal b/f
XX
XX
All receipts will be recorded
here
XX
All payments will be
recorded here
Bal c/f
XX
Income & Expenditure Account
Particulars
RM
Particulars
RM
All expenses will be recorded
here
XX
All income will be recorded
here
XX
Fee Account
Jan 1
Unearned b/f
xx
Dec 31 Income & Expenditure xx
Advanced c/f
I&E – revenue
item
xx
BS – current
liability
Jan 1
Advanced b/f
Xx
Dec 31
Receipts & Payment
xx
Unearned c/f
xx
BS – current
asset
1. A club golf with 100 members charge the annual fee for RM50/member. The club
received RM 4,200 as fees for the financial year ended 31 Dec 2009. That amount
inclusive of RM 300 for 2010.
Prepare Fees A/c
2. Balance as at 1 Jan 2009 : Unearned fees for 2008 RM 160
Advanced fees for 2009 RM 80
Extract from Cash Book as at 31 Dec 2009 :
Cash Book
Fees for 2008
RM 140
Fees for 2009
RM 4,400
Fees for 2010
RM 110
Additional info: Unearned fees for 2009 as at 31 Dec 2009 is RM 65
Balance for Unearned Fees for 2008 are write off .
Prepare : Fees A/c, extract of P&L and extract of Balance Sheet
3. Extract from Cash Book as at 31 Dec 2009 :
Cash Book
Fees for 2008
Fees for 2009
Fees for 2010
RM 80
RM 4,850
RM 145
Additional info. :
On 1 Jan 2009, unearned fees is RM 98. Unearned fees for 2008 are write off.
There are Unearned Fees for 2009 for RM 68 as at 31 Dec 2009.
Prepare : Fees A/c, extract of P&L and extract of Balance Sheet
Enhance your understanding :
Income & Expenditure A/c fye 31/3/
Rent
240 Profit from sales
Printing & Stationery 150
Ticket sales
Organizer’s expenses 160
Fee
Maintenance
60
Whole life fee
Salaries
Misc
Depre-equipment
Surplus
520
55
180
3370
4735
315
2650
1600
170
4735
How did this figure
derived ??
Balance Sheet as at ………..
Non Current Asset :
Equipment
1100
-Accu. Depre
(180)
920
Current Asset :
Unearned fee
Prepaid rent
Cash
Current Liab :
Printing
400
60
3380
3840
(30)
3810
4730