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Question
Answer the following question:
How are specific donations treated while preparing final accounts of a 'Not-For-Profit Organisation'?
Solution
Since specific donations are capital receipts, they are shown under liability side of the balance sheet.
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RELATED QUESTIONS
State the meaning of 'Not-for-Profit' Organisations.
From the following details provided by Kumud Ltd., prepare a Comparative Statement of Profit & Loss for the year ended 31st March 2021:
| Particulars | 31.03.20 (₹) | 31.03.21 (₹) |
| Revenue from operations | 30,00,000 | 35,00,000 |
| Other Income | 3,00,000 | 4,50,000 |
| Cost of materials Consumed | 20,00,000 | 23,00,000 |
| Other Expenses | 1,00,000 | 1,20,000 |
| Tax rate | 40% | 40% |
Consider the following statements
Statement 1 - "Receipt and Payment Account is equivalent to profit and loss account".
Statement 2 - Receipt and Payment Account is prepared at the end of the accounting year.
Subscription received in advance during the current year is ______.
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| Dr. | Receipts and Payments Ne [An Extract] | Cr. | |
| Receipts | Amount (₹) | Payments | Amount (₹) |
| To Interest on Investments |
Nil | By 8% Investments [01-10-18] |
60,000 |
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Not-for-profit organisations prepare ______.
Accounts generally prepared by all the Non-Profit organisations are ______.
Final Accounts which constitute the financial statements of a not-for-profit organisation at the end of the year:
