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Financial Accounting Paper 2, Nov/Dec 2008  
Questions: 1 2 3 4 5 6 7 8 9 Main
General Comments

question 4

(a)        List five sources of income to not-for-profit making organizations.
(b)        Describe: 
            (i)         Receipts and Payments Account and
            (ii)        Income and Expenditure Account.


Many candidates performed well in this question but some candidates could not describe  b (i) and b (ii)
The expected description are:

Receipts and Payments Account 
-           It shows the summary of the cash transactions of not-for-profit making
organization over a particular period of time.
-           Capital receipts and payments, revenue receipts and payments are included
-           All revenue are debited while all expenditure are credited.
-           Its balance is either a current asset or a current liability.
Income and Expenditure Account
-           This account is used to record the income accruing to a not-for-profit making organization for a period and its expenditure for the same period.
-           All items of capital nature are excluded.  Only revenue items are included.
-           It operates on accrual basis.
-           All expenditure are debited while all income are credited.
-           Its closing balance is either a surplus or a deficit.

Section  B  (Practice of Financial Accounting)

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