Kerala Plus Two Accountancy Notes Chapter 1 Accounting for Not For Profit Organisation
Summary
Not for Profit Organisation – Meaning
Meant for rendering sevices to members and to the community and not for making profit.
Accounting Records
Cashbook, ledger accounts of all incomes, expenses, assets, and liabilities, stock register of assets and consumables.
Financial Statements
Receipt and payment account, Income and expenditure account and Balance sheet.
Receipt and Payment Account
Cashbook in a summary form and is a real account; receipts on the debit side and payments on the credit side. Balance in the account is cash balance.
Receipts And Payments Account
The format of receipts and Payments account is given below:
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Income and Expenditure Account
It is a nominal account, debited with all expenses and losses and credited with all incomes and gains of revenue nature only. Difference in the account is either surplus or deficit.
The format of Income and Expenditure Account is given below:
Income and expenditure of______(Name of organisation) for the year ended______(date)
Balance Sheet
Prepared to ascertain the financial position at the end of an accounting period, assets on the right side and liabilities on the left side.
The format of Balance sheet is given below
Balance sheet of_____(Name of the organisation) as on______(Date)
