The balance sheet of a non profit organisation such as a charitable hospital doesn’t contain ____

Assets

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Building

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Debts

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Owner’s equity

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Solution

The correct option is D
Owner’s equity

Owner's Equity is not a part of the balance sheet of non profit organisation

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Q. The balance sheet of a non-profit organization such as a charitable hospital doesn't contain the _____________.

PRACTICAL PROBLEMS

(Accounts of a Charitable Hospital)

Following information has been provided by “Janseva Charitable Hospital”, Latur. You are required to prepare Income and Expenditure Account for the year ending on 31/03/2013 and Balance Sheet as on that date.

Balance Sheet as on 01/04/2012
Liabilities	Amount Rs	Assets	Amount Rs
Capital Fund	10,37,000	Building	10,00,000
Bank Loan	6,00,000	Ambulance	3,50,000
Outstanding bill for Drugs	45,000	Stock of Drugs	35,000
		Hospital Equipments	2,95,000
		Cash in Hand	2,000
	16,82,000		16,82,000

Receipts and Payments Account for the year ending 31.03.2013
Dr.	Cr.
Receipts		Amount Rs	Payments	Amount Rs
To Balance b/d		2,000	By Purchases of Drugs	1,90,000
To subscription		2,10,000	By Salary of staff	85,000
To Life Membership Fees		27,500	By Honararium to Doctors	3,85,000
To Hospital Receipts		5,20,900	By Repairs and Maintenance	17,900
(Revenue)			By Furniture	40,000
			By General Expenses	12,600
			By Balance c/d	29,900
		7,60,400		7,60,400

Adjustments:

1) On 31/03/2013 stock of Drugs was valued Rs 20,000.

2) Depreciate Building @ 5% p.a. and Ambulance by Rs 20,000

3) Life Membership Fees are to be capitalized.

Q. Which of the following, equations properly represents a derivation of the fundamental accounting equation?
(a) Assets + Liabilities = Owner Equity
(b) Asset = Owner Equity
(c) Cash = Assets
(d) Assets - Liabilities = Owner Equity

Q. Not-for-profit organisations are organised as charitable trusts and subscribers to such organisation are called _________.

From the following, calculate (a) Debt Equity Ratio (b) Total Assets to Debt Ratio (c) Proprietary Ratio.

	Rs
Equity Share Capital	75,000
Preference Share Capital	25,000
General Reserve	45,000
Balance in the Statement of Profits and Loss	30,000
Debentures	75,000
Trade Payables	40,000
Outstanding Expenses	10,000

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The balance sheet of a non profit organisation such as a charitable hospital doesn’t contain ____

The correct option is D Owner’s equity Owner's Equity is not a part of the balance sheet of non profit organisation

The correct option is D
Owner’s equity

Owner's Equity is not a part of the balance sheet of non profit organisation