How are Specific donations treated while preparing final accounts of a 'Not-For -Profit Organisation'? (2024)

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Standard XII

Accountancy

Fundamentals of Not-for-Profit Organisation

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Not-for-Profit Organisations are set up with the prime objective of providing services and not to earn profit thereby enhancing the welfare of the society. Such organisations include schools, hospitals, trade unions, religious organisations, etc. The person or the groups of individuals who govern and manage the working of an NPO are known as trustees.

Specific donations are capital receipts and hence they are shown under liability side of the balance sheet.

How will you treat sale of old newspapers while preparing the final accounts of a non-profit organisation?

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State the basis of accounting of preparing 'Income and Expenditure Account' of a Not For - Profit Organisation.

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How are the following dealt with in the accounts of a Not-for-Profit Organisation ?

Case I	Dr. (₹)	Cr. (₹)	Case II	Dr. (₹)	Cr. (₹)
Prize Fund Prizes Paid Match Expenses	12,000 15,000	50,000	Match Fund Match Expenses Investments of Match Fund Interest on Match Fund Investments Prizes Paid	35,000 60,000 19,000	1,00,000 3,000

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How will you deal with the following case while preparing final accounts of a non-profit organisation:

1.1.201231.12.2012(Rs)(Rs)Stock of Stationery600100Creditor for Stationery400260Advance paid for stationery4060Amount paid for stationery during 2012 was Rs 2,160.

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