This accounting problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.
ScanSolve AI Answer
The surplus for the year is calculated by subtracting the total expenditure from the total income. Here's the breakdown: Step 1: Calculate Total Income for the year ended 30th June, 20X2. Subscriptions: \\ Received (20X1: N105,000 + 20X2: N14,000 + 20X3: N2,800) & = N121,800 \\ Add: Arrears at 30/6/X2 & = N8,400 \\ Less: Arrears at 30/6/X1 & = (N9,800) \\ Less: Prepaid at 30/6/X2 (20X3 subscriptions received in 20X2) & = (N2,800) \\ Subscriptions for the year & = N117,600 \\ Registration fees & = N119,000 \\ Donations & = N93,800 \\ Total Income & = N117,600 + N119,000 + N93,800 \\ & = N330,400 Step 2: Calculate Surplus for the year. Surplus & = Total Income - Total Expenditure \\ Surplus & = N330,400 - N315,210 \\ Surplus & = N 15,190 The total expenditure of N315,210 was explained in the previous response. What's next?