How does a not for profit organization deal with following...
Outstanding subscriptio ,donations,toirnaments,legecy,life membership fees....
Answers
Hello..
Outstanding Subscriptions :- Subscriptions not received, i.e. , outstanding are shown in the assets side of the Balance Sheet .
Donations :- A charitable institution often receives donations. Donation may be :-
General Donation :- It is the donation in which the donor does not specify any condition for its use .The amt. is accounted as an income and credited to Income and Expenditure A/c.
Specific Donation :- Donor specifies the purpose of use. Specific donation is capitalised and shown on the liabilities side of balance sheet.
Legacy :- Legacy is the amt. received under WILL of deceased person. It is credited to Income and Expenditure
A/c in general donation. It is credited to Fund A/c in specific donation.
Life Membership fee :- It is accounted as a Capital Receipt and added to Capital Fund on the liabilities side of the balance sheet.
hope it helps..