Question

Construction Treatment in NPO?​

Answer 1

Answer:

It is the amount which a Not For Profit Organization will receive as per will of a deceased person. It is shown on the debit side of receipts and payments account. It should be capitalized being an item of non-recurring nature and should be shown on the liabilities side of the Balance Sheet.

Answer 2

non-profit organization keeps proper books of accounts. It aims to provide a simple and convenient calculation of items of income and expenditure and finding the correct position of assets and liabilities of the organization. Let us study the accounting treatment of capital funds and special funds.