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In this lesson you will learn about Income and Expenditure Account and Balance Sheet of Not for Profit Organisations NPOs.
Npo balance sheet. Balance sheet is a financial statement that summarizes all the assets liabilities and capital of a particular company at a specific period of time. Prepare Income and Expenditure Account and the Balance Sheet after charging 10 depreciation on Billiards Tables. Retained Earnings also called accumulated earnings retained capital or earned surplus appears in the shareholder equity section of the statement of financial position more commonly known as Balance Sheet.
After studying this lesson you will be able to. Therefore the balance sheet will not have a capital account. But there are some differences from trading concerns.
Account and Balance Sheet. In the previous lesson you have learnt the meaning and need for preparing Receipts and Payments Account items to be taken and also its preparation. It is free downloadable and printable as well.
There will be no contributors of capital in the non-profit concern. The Income and Expenditure Account is simply another name for the Profit and Loss Account drawn up for a non-profit organisation. Lastly the statement of cash flows shows you how much money is entering and leaving your organisations accounts during a specific period of time.
It shows all the amount that the company invested on certain project the amount of money it owns and it owes. If a nonprofit organization receives a donation it has to honor some performance in return to the donor. The balance sheet of non-profit organizations is prepared in the same manner as in the case of business enterprises.
Balance Sheet NPO Not for profit organisation class 12 accounts video 8NPO - Financial statements of not for profit organisation class 12 Chapter. The balance sheet for non-profit concern is similar to the balance sheet of trading concern. Except for some peculiar transactions the items are also same.
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