Question

How would a not for profit organization deal with the following
a) outstanding subscription, b) Donation, c) Tournament fund, d)legacy,e)Life Membership fees.

Answer 1

a. subsciptions outstanding at the end of the year is written on the assets side of the balance sheet

b. there are 2 types of donations.specific nd general donations

specific donations are capitalised and are shown in the laibilities side of balance sheet whereas general donations are shown as income in income nd expenditure account

c. tgese funds are not shown in income nd expenditure account

d. if thr legacy is not for a specific purpose then it is capitalised in the name of special fund for that purpose.however if the amount of legacy is small,it may be treated as income nd can be credited to income nd expenditure account

e. this is of non recurring nature md as such is treated as a capiral receipt nd is shown on the laibilities side of balance sheet