Youngsters Club has a membership of 115 persons. Each member pays an annual subscription of ₦50. During the year ended 31st December 2005, 8 members had not...

Assessment: WAEC SSCE - Financial Accounting - 2007 (Objective) Subject: Financial Accounting

Question 1 Report

Youngsters Club has a membership of 115 persons. Each member pays an annual subscription of ₦50. During the year ended 31st December 2005, 8 members had not paid their subscriptions. using the information, the subscriptions shown in the Balance sheet as at 31st December 2005 is

₦400(asset)

₦150(asset)

₦150(liability)

400(liability)

Answer Details

The subscriptions shown in the balance sheet as at 31st December 2005 would be considered a liability, as they are amounts owed to the club by its members. Since 8 members had not paid their subscriptions, the total amount of outstanding subscriptions would be calculated as follows: 8 members x ₦50 per member = ₦400 Therefore, the subscriptions shown in the balance sheet as at 31st December 2005 would be ₦400, listed as a liability owed to the club.

Read lesson note on Nature And Significance Of Accounting (JAMB)

Nature And Significance Of Accounting

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Youngsters Club has a membership of 115 persons. Each member pays an annual subscription of ₦50. During the year ended 31st December 2005, 8 members had not...

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