Question

. How would a not-for-profit organization deal with the following items. (a) Outstanding Subscriptions, (b) Donation, (c) Tournament Fund, (d) Legacy

Answer 1

(1) outstanding subscription-if o/s sub is previous year than it will be added in current year subscription and if subscription is given if advance of next year it will be less
(2) donation- donation always added in current year donation it is income for organisation
(3) tournament fund- its treated in closing balance sheet in liability side
(4) legacy- treated in closing balance sheet in liability side