Question

Which statement are prepared by the Not-for-profit Organisations?

• A. Receipt and Payment Account
• B. Income and Expenditure Account
• C. Balance Sheet
• D. All of the above

Answer 1

The correct option is D All of the above

The statements prepared by Non-for-profit organisations are:-

1) Receipt and payments account - It is a real account just like cash account. Its prepared at the end of the year. All receipts are recorded on the debit side and expenses on the credit side.

2) Income and expenditure account - Its a nominal account and is just like a profit and loss account. All the expenses are recorded on the debit and side and incomes on the credit side.

3) Balance sheet - Balance sheet is prepared normally. The difference between assets and liabilities is shown as capital fund or general fund.