Non Profit organization

Npo refers to organization which is worked for welfare of society. Its basic
objective is rendering services to the society instead of making profit.

While Doing Accounting for NPO

We need to prepare
1. Income And Expenditure A/c -- Revenue Nature of transaction
2. Balance Sheet --- Revenue and Capital nature of transaction

Basic Rules:--
1. Income And Expenditure A/c:--
A) Only Revenue Nature Of transactions are recorded here
B) Transactions related to current year only going to be record

Receipt side of cash Book -- Either Income or Liability

Payment Side Of Cash book—Either Expenditure or Assets

Subscription

Subscription received in CY xx
+Subscription Outstanding for CY xx
+Subscription Recieved in PY For CY xx
Xxxx
- Subscription Received in CY For PY (xx
- Subscription Received in CY For NY xx

Xxx
1st April 2014 To 31st March 2015
2014-2015
Subscription Received on 31st March 2015 250000
(-)Subscription Rec in Cy For Py (50000)
(+)Subscription outstanding for cy 35000
(+)Subscription Received in Advance for Cy 25000
(-)Subscription Rec in Cy For NY (30000)
230000
Subscription received for 2014-15 is 230000

Illustration No.2
Total Subcription for (2014-15)= 230*125 = 28750
Subscription Received 26750
Subscription outstanding for cy 2000