Practice - Adjustments in Non-Trading Organisations
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Practice Questions
Test your understanding with targeted questions
What is a subscription adjustment?
💡 Hint: Think about upfront payment and future income.
Why do we charge depreciation on fixed assets?
💡 Hint: Consider wear and tear on items.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is the significance of subscription adjustments?
💡 Hint: Consider what happens if we include future income.
True or False: Depreciation does not affect income statements.
💡 Hint: Think about how asset values change over time.
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Challenge Problems
Push your limits with advanced challenges
A charity received ₹10,000 in advance for subscriptions for next year. How will this amount appear in the financial statements? If the charity also incurred ₹3,000 in outstanding expenses during the same period, how do you report these?
💡 Hint: Consider the time aspect of income and expenses.
If an organisation's fixed assets are worth ₹50,000 and depreciation each year is ₹5,000, what would the value of fixed assets be at the end of three years? Discuss how this affects the reported profits.
💡 Hint: Remember to factor in the cumulative effect of depreciation on assets!
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