Accumulated fund equation for non-profit clubs

Steps:

• Identify the formula: Closing fund = Opening fund + Income - Expenses.
• Rearrange for income: Income = Closing fund - Opening fund + Expenses = $16,200 -$18,000 + $9,500.
• Calculate the net change: -$1,800 (decrease).
• Add to expenses: $9,500 -$1,800 = $7,750 (equipment purchase is capital, not an expense, so ignored). Why A is correct:
• $7,750 matches the formula for subscriptions as the sole income source, reflecting surplus/deficit on revenue account. Why the others are wrong:
• B: Ignores fund decrease, overstates by adding equipment incorrectly.
• C: Subtracts expenses from fund change, confuses outflow direction.
• D: Adds fund decrease to expenses, treats decrease as additional income.

Final answer: A