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Question
Answer the following question:
State the basis of accounting of preparing the 'Income and Expenditure Account' of a 'Not-For-Profit Organisation.
Solution
The 'Income and Expenditure Account' of a 'Not-for-Profit Organisation' is prepared on accrual basis.
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RELATED QUESTIONS
How is Entrance Fees dealt with while preparing the final accounts for the year ended 31st March, 2019 in each of the following alternative cases?
Case I During the year ended 31st March, 2019, Entrance Fees received was ₹ 1,00,000.
Case II During the year ended 31st March, 2019, Entrance Fees received was ₹ 1,00,000.Out of this, ₹ 25,000 was received from individuals whose membership is not yet approved.
Prepare Income and Expenditure Account from the following Receipts and Payments Account of Delhi Nursing Society for the year ended 31st March, 2019
| Dr. | Receipts and Payment Account for the year ended 31st March, 2019 |
Cr. | |||
| Receipts | Amount (₹) | Payments | Amount (₹) | ||
| To Balanceb/d (Cash at Bank) |
2,01,000 | By Salaries of Nurses | 65,600 | ||
| To Sunscriptions | 1,11,500 | By Board, Laundry and Domestic Help | 38,000 | ||
| To Fees from Non-members | 27,000 | By Rent, Rates and Taxes | 20,000 | ||
| To Government Grant | 1,00,000 | By Cost of Car | 2,00,000 | ||
| To Donations for Building Fund | 1,56,000 | By Expenses of Car | 84,000 | ||
| To Interest | 3,800 | By Drugs and Incidental Expenses | 67,000 | ||
| By Balance c/d (Cash at Bank) | 1,24,700 | ||||
| 5,99,300 | 5,99,300 | ||||
Donation of ₹ 10,000 received for Building Fund was wrongly included in the Subscriptions Account. A bill of medicines purchased during the year amounted to ₹12,800 was outstanding. Government Grant is not for a specific purpose.
How will the following items be treated while preparing the financial statements of a not-for-profit-organization for the year ended 31st March, 2019.
| As at 31-3-18 (₹) | As at 31-3-19 (₹) | |
| Creditors for stationery | 78,000 | 50,000 |
| Stock of stationery | 62.000 | 41,000 |
During 2018-19, payment made to creditors was ₹ 1,80,000.
The Income and Expenditure Account is prepared on which basis with the help of the Receipts and Payments Account?
What is the nature of the Income and expenditure Account?
How would you treat the following item in the case of a 'not-for-profit 'organization?
"Receipts from Charity Show Rs.7,000. Expenses on Charity Show Rs.3,000".
Subscriptions received in cash during the year amount to ₹ 50,000, the amount received in advance for the next year is ₹ 5,000, and the amount outstanding for the current year was ₹ 5,000. The amount to be debited to the Income and Expenditure Account is:
If there is a 'Match Fund', then match expenses and incomes are transferred to ______
The amount received from sale of old sports materials by an organisation will be shown in which of the following?
Income and expenditure account is prepared by:
