Hello guys,
Which things will come in opening balance sheet of not for profit organisations which comes in working notes usually?
It is from class 12 financial statements of Not for profit organisations....
Plzzz answer fast!!!!
Answers
Introduction to Balance Sheet
Preparation of balance in the case of non-trading or non-profit making concern and preparation of balance sheet in the case of a trading firm is same. It has all liabilities and assets as on the date of the preparation of the balance sheet by the organization. The excess of assets over the liabilities is termed as Capital Fund or the General Fund.
Preparation of Balance Sheet for Non-Profit Organization
Balance Sheet for Non-Profit Organization: General Fund
In the case of non-profit organizations, the Capital Fund is accumulated along with capital Receipts and receipts that are capitalized by further increasing the surplus or decreased by the deficit, during the year. At the beginning of a non-trading concern, there will be no formal capital Fund and in such case, the Surplus, if any, earned during the year constitute the Capital Fund at the end of the year.
The balance sheet of a non-profit organization is prepared in the same manner as in the case of a business enterprise. The assets of the organization are recorded on the Right side and liabilities on the Left side. The Non-profit organizations do not use the term Capital. Instead, General Fund or Accumulated Fund appears on the Balance Sheet.
The NPO might also create a special fund, such as prize fund or match fund. The purpose of which is to meet the expenses related to the purpose for which it is created. The incomes on the amount which is invested from these funds accrue to the fund alone and not the income and expenditure account.
This ans. Is given in module - 2 of accounts of CA FOUNDATION COURSE.
This modules pdf file will avaliable in website of icai on google.
Thank you ❤️