Observation

Majority of the candidates who attempted the questions performed well. However, some gave wrong answers to the question on benefits of preparing control accounts.

            Some of the suggested answers are:
Control account is an account prepared to check the arithmetical accuracy of entries made
into particular segment of the ledger.
OR
Control account is a memorandum account, the balance of which reflects the aggregate balances of many related subsidiary accounts which are parts of double entry system.
OR
Control account is a memorandum account into which are transferred in totals, the various amounts of transactions which have been debited or credited in details to individual ledger account.

(b) Sources of income for not-for-profit making organizations:
(i)         Donations;
(ii)        Entrance fees;
(ii)        Subscription/membership dues;
(iv)       Income from business activities/bar;
(v)        Life membership fees;
(vi)       Disposal of assets;

(vii)      Legacy;
(viii)     Grants;
(ix)       Loans;
(x)        Gate fee/sale of ticket.

(c) Benefits of preparing control accounts:
(i)         It helps to prevent fraud;
(ii)        It provides a check on the accuracy of balances in the ledgers;
(ii)        It helps to ascertain total debtors and total creditors;
(iv)       It aids quick preparation of interim reports/accounts;
(v)        It aids management control.