Reference no: EM132765100

Question - Below are the Opening balances as of 1 January 2019 of organization Y.

Account Debit Credit

Staff float 35,000

Advance to suppliers 50,000

Advance to staff 20,000

Income Receivable 1,000,000

Petty cash 10,000

Bank 600,000

Creditor 600,000

Accruals 300,000

Reserves brought forward 815,000

Total 1,715,000 1,715,000

During the year the following transactions occurred:

1. The organization made 10 grants to 10 different local NGOs, each grant mounted to $100,000.

2. Two staff cleared the advance of $35,000. Organization has to pay $5,000 to those staff. The amount claimed was the costs of 2 workshops on program issue.

3. Paid the suppliers the amount of $100,000 that was purchased in credit in last period.

4. Received $2,000,000 from sponsorship income.

5. Salary of staff which was $400,000 of which $40,000 was accrued by end of the year.

6. Received $1,800,000 from 3 official donors, of which $600,000 was recognized as income (receivable) last year.

7. Paid office consumable for period amounted to $200,000.

8. Prepaid rent of office for next year, $120,000.

9. There were some workshops that happened in December but could not be paid within the year. The costs of these workshops were $190,000.

10. Spent on projects which managed directly by the organization $800,000 of which $100,000 was material that was advanced (to suppliers) last year.

11. Clear the $100,000 of withholding tax, that was accrued last year.

12. Signed a new contract with a donor in December and received $600,000 for the project to be implemented from January next year.

13. Paid to Travel Agent the amount of $50,000 for the travel costs of staff.

14. Received $250,000 from a foundation for a project implemented in the year.

15. Paid $60,000 as gratuity (severance) to 5 staff leaving organization. All amounts were accrued.

Required - Make an Income Statement and Balance Sheet for organization in an excel sheet Y by end of 2019. Please state your assumption (if any).