WAEC Accounting 2021 Theory — Question 3

Model answer

(a)(i) Entrance fees: the fee collected for entry into events; it could also be a fee charged to whoever wants to join the organisation as a member. (ii) Subscription: the annual compulsory levy imposed on all members so as to remain a member of the organisation. (b) Features of the Income and Expenditure Account: it records only cash transactions (of a revenue nature); all receipts are recorded on the debit side while payments are posted to the credit side; it can never have a credit balance, as an organization cannot spend what it does not have; it is a real account; it records both capital and revenue expenditures and receipts related to the period.