Accounts of Not-For-Profit-Making Organisations: JAMB Principles of Accounts Questions, Answers & Notes

What Accounts of Not-For-Profit-Making Organisations covers in the JAMB Principles of Accounts syllabus

Not-for-profit organisations (clubs, societies, charities) exist to serve members/society, not to make profit. Instead of a profit and loss account they prepare an income and expenditure account (on the accrual basis, showing only revenue items) — its excess of income over expenditure is a surplus (like profit), and excess of expenditure a deficit (like loss). The receipts and payments account is simply a summary of the cash book (all money received and paid, cash basis). Their capital is the accumulated fund (= assets − liabilities). Main income is subscriptions (members' regular payments — which may be in arrears, in advance, or a lump-sum life subscription), plus donations/special funds; capital receipts are excluded from the income and expenditure account. A club running a bar prepares a trading account for it. The aim is to show the surplus/deficit and fund position.

For Accounts of Not-For-Profit-Making Organisations, JAMB expects you to be able to:

• Explain non-profit organisations and their accounts
• Distinguish receipts and payments vs income and expenditure accounts
• Explain surplus/deficit, accumulated fund and subscriptions

Key facts & revision notes: Accounts of Not-For-Profit-Making Organisations

These are the recurring points our Accounts of Not-For-Profit-Making Organisations questions test — revise them until each feels automatic, then practise the questions above to lock them in.

• Not-for-profit organisations (clubs, societies, charities) exist to serve members/society, not to make profit.
• Non-profit organisations prepare an income and expenditure account instead of a profit and loss account.
• An excess of income over expenditure (surplus) is the non-profit equivalent of a profit.
• An excess of expenditure over income is a deficit (like a loss).
• The receipts and payments account is a summary of the cash book (all money received and paid).
• The receipts and payments account records only cash (money) transactions, on a cash basis.
• The income and expenditure account is prepared on the accrual basis (matching income and expenses to the period).
• The capital of a non-profit organisation is the accumulated fund.
• Subscriptions are the regular payments members make to belong to a club/society (its main income).
• Subscriptions in arrears are amounts owed by members for the period but not yet paid.
• Subscriptions in advance are paid for a future period; they are a liability at year end.
• A life subscription is a lump sum paid for lifelong membership.
• A special fund or donation is money received for a specific stated purpose.
• A bar/refreshment trading account is prepared to find the profit from the bar activity.
• Accumulated fund = assets − liabilities (like capital = assets − liabilities).
• Capital receipts are excluded from the income and expenditure account (which shows only revenue items).
• Only revenue (recurring income and expenses) items appear in the income and expenditure account.
• Non-profit organisations include clubs, societies, charities, associations and professional bodies.
• The receipts and payments account is cash-based; the income and expenditure account uses the accrual basis.
• Non-profit accounts show the surplus or deficit for the period and the organisation's fund/financial position.

Worked examples

Three Accounts of Not-For-Profit-Making Organisations questions with the answer and a short explanation, so you can see how the topic is set before you practise the full set.

How Accounts of Not-For-Profit-Making Organisations is tested in JAMB Principles of Accounts

Our Accounts of Not-For-Profit-Making Organisations bank holds 20 questions (4 medium, 16 hard). JAMB Principles of Accounts typically returns to Accounts of Not-For-Profit-Making Organisations year after year, so steady practice on this topic is high-value revision. Questions are multiple-choice with four options, and at UTME pace you get roughly 40 seconds each — which is why timed practice matters.

How to answer Accounts of Not-For-Profit-Making Organisations questions

Work the stem first and predict the answer before you look at the options; then eliminate the ones that contradict the key facts above. Watch for “which is not…”, “all of the above” and “except” style stems, which are where rushed candidates lose easy marks on Accounts of Not-For-Profit-Making Organisations. If a calculation or a precise definition is involved, work it from first principles rather than guessing from a half-remembered rule. When two options look right, re-read the stem for the qualifier that separates them — JAMB rarely repeats an option by accident. If you are still unsure, eliminate the two weakest choices to lift your odds, flag the question, and move on; never burn a full minute on one Principles of Accounts item when the exam gives you about forty seconds each. Then come back to flagged questions with whatever time remains. The single most reliable way to get faster at Accounts of Not-For-Profit-Making Organisations is repeated timed practice, so use the button above until the recurring patterns feel automatic.

Common mistakes to avoid in Accounts of Not-For-Profit-Making Organisations

The errors that cost marks on Accounts of Not-For-Profit-Making Organisations are usually careless rather than conceptual: misreading a negative stem, confusing two similar terms, or rushing a definition you actually know. Candidates also over-rely on “expo” and last-minute cramming instead of understanding the topic — which fails the moment JAMB rephrases a familiar idea. Treat every option as a claim to be checked against the facts above, keep your working tidy for any calculation, and don’t change a considered answer on a hunch. Above all, revise Accounts of Not-For-Profit-Making Organisations actively by answering questions, not just by re-reading notes — recall under time is what the exam rewards.

Frequently asked questions

Is Accounts of Not-For-Profit-Making Organisations part of the JAMB Principles of Accounts syllabus?

Yes. Accounts of Not-For-Profit-Making Organisations is a recognised topic in the JAMB Principles of Accounts syllabus, covering explain non-profit organisations and their accounts. You should be able to recall its key facts and apply them to multiple-choice questions.

How many Accounts of Not-For-Profit-Making Organisations questions can I practise on Belmadeng?

There are 20 original, JAMB-standard Accounts of Not-For-Profit-Making Organisations questions in our free bank, each with the correct answer and a worked explanation. You can practise them untimed or as a timed test.

What are the most important points to know about Accounts of Not-For-Profit-Making Organisations?

Not-for-profit organisations (clubs, societies, charities) exist to serve members/society, not to make profit. Instead of a profit and loss account they prepare an income and expenditure account (on the accrual basis, showing only revenue items) — its excess of income over expenditure is a surplus (…

How do I answer Accounts of Not-For-Profit-Making Organisations questions quickly in JAMB?

Read the stem carefully, eliminate clearly wrong options, and match the remaining choices to the key facts for Accounts of Not-For-Profit-Making Organisations. Practising timed Accounts of Not-For-Profit-Making Organisations questions builds the speed you need for UTME's pace of about 40 seconds per question.

Are these JAMB Principles of Accounts Accounts of Not-For-Profit-Making Organisations questions past questions or original?

They are original questions written to JAMB (UTME) standard and mapped to the official syllabus — not reproduced past papers. This keeps them legal to use freely while closely mirroring how the real exam tests the topic.

Where can I practise Accounts of Not-For-Profit-Making Organisations questions free without signing up?

Right here — tap “Start Accounts of Not-For-Profit-Making Organisations practice” on this page to begin instantly. Belmadeng's CBT practice is completely free and needs no sign-up, download or subscription.

About these questions: original, JAMB-standard items written from the official UTME Principles of Accounts syllabus (last reviewed 2026-09-18). Belmadeng is an independent study platform and is not affiliated with JAMB. Spotted an error? Use the report link.