1. Outline the main sources of income or revenue for not for profit organization (2 marks)
2. Distinguish between receipts and payments account and income and expenditure account as used in not for profit accounting. (2 marks)
3. The following is a receipt and payment account prepared by Railways Golf Club for the year ended 31 December 2010.

	Receipts and Payments Account as at 31 Dec 2010
Date	Details	Amount	Date	Details	Amount
2010		Shs	2010		Shs
1. 1	Cash in hand	10,000		Grounds man wages	75,000
1. 1	Balance at bank	283,000		Purchase of mowing machine	150,000
	Donations and Subscriptions	260,000		Rent of grounds	25,000
	Receipts from tea party sales	30,000		Cost of Tea party	25,000
	Donations for traveling	10,000		Travelling expenses	40,000
	Sale of Equipment	8,000		Printing and stationery	28,000
	Net proceeds from Dinner	78,000		Repairs to equipment	50,000
31.12	Bank Interest	3,000		Honoraria to Secretary and Treasury	40,000
				Balances:
			31.12	Cash in Hand	25,000
				Bank	224,000
		682,000			682,000

Additional Information:

Balances on:	1.Jan 2010	31 Dec 2010
Subscriptions due in (Shs)	15,000	10,000
Amounts due for printing and stationery (Shs)	10,000	8,000
Un-presented cheques made for repairs (Shs)	30,000	25,000
Bank interest not entered in the cashbook as at 31.12. 2010 (Shs)		2,000
Estimated value of machine and equipment (Shs)	80,000	175,000

For the year ending 31^st December 2010, the honoraria to the treasurer are to be increased by Shs 20,000, and the grounds-man is to receive a bonus of Shs 20,000. The equipment sold had been bought at Shs 2000.

Required:

1. Compute the opening balance of the accumulated fund. (4 marks)
2. The income and expenditure account for the year ended 31^st December 2010 (7 marks)
3. The balance sheet as at 31^st December 2010. (5 marks)

(Total marks 20)