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NPO Financial Statements Overview

The document compares and contrasts the receipts and payments account and the income and expenditure account used by not-for-profit organizations. The receipts and payments account is prepared on a cash basis and shows all money received and paid out, regardless of the period. The income and expenditure account is prepared on an accrual basis and shows income earned and expenses incurred during the period, whether paid or not. It can end with a surplus if income exceeds expenses or a deficit if expenses are greater than income. The balance sheet lists assets, liabilities, and fund balances at a point in time.

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Sameeksha Kosaria
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159 views1 page

NPO Financial Statements Overview

The document compares and contrasts the receipts and payments account and the income and expenditure account used by not-for-profit organizations. The receipts and payments account is prepared on a cash basis and shows all money received and paid out, regardless of the period. The income and expenditure account is prepared on an accrual basis and shows income earned and expenses incurred during the period, whether paid or not. It can end with a surplus if income exceeds expenses or a deficit if expenses are greater than income. The balance sheet lists assets, liabilities, and fund balances at a point in time.

Uploaded by

Sameeksha Kosaria
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

NOT – FOR – PROFIT ORGANISATIONS (NPO)

Receipts and Payments Income and Expenditure


Balance Sheet
Account Account

Prepared on Cash Basis of Accounting Prepared on Accrual Basis of Accounting

Receipts Payments Expenditure Income Liabilities Assets


Begins with Opening Payments of every nature Expenses of revenue Income of revenue General Fund or Fixed Assets,
Cash and Bank irrespective of the period nature for the nature for the Accumulated Fund Investments,
Balances to which it relates. Thus, accounting period, accounting period, Opening Balance
both Capital Expenditure whether paid or not are Stock of Consumables,
Receipts of every nature whether received or not Add: Surplus or
irrespective of the period and Revenue Expenditure shown. are shown. Medicines Stock,
Less: Deficit
to which it relates are are shown. Examples are: Examples are: Books,
Specific Fund
shown. Thus, both Capital Examples of Payments: Salaries, Subscriptions Receivable,
Entrance Fee, (Received as Donation or
Receipts and Revenue Purchase of assets, Electricity Expenses, General Donations, Set aside out of Surplus) Sports Equipment,
Receipts are shown. Outstanding Expenses, Stationery, (Building / Sports, etc.) Prepaid Expenses,
Examples of Receipts are: Legacy (General)
Investments, Insurance,
Donations of all types, Subscriptions, Opening Balance Cash in Hand,
Salaries, Scholarships,
both General and Interest, Add: Received during Cash at Bank.
Electricity Expenses, Honorarium, the Year
Specific,
Purchase of Sports Gain (Profit) on Sale of
Government Grants, Medicines Consumed, Less: Spent during the
Material, assets,
Entrance Fee, Sports Material Year
Purchase of Stationery, Consumed, Rent, Sale of Old Newspapers
Membership Fee, Advance Subscription,
Insurance, and Magazines, etc.
Travelling Expenses, Outstanding Expenses,
Subscriptions, Ends with Deficit
Donations, Newspapers and Government Grant,
Interest, (Excess of Expenditure
Scholarships, Magazines, Legacy (Specific)
Sale of assets, over Income)*
Honorarium, Telephone Expenses,
Sale of Old Materials, etc.
Scholarships, Loss on Sale of assets,
Debit Balance of Specific Postage and Courier, etc.
Revenue Funds, etc. Ends with Surplus
Ends with Closing Cash (Excess of Income over
and Bank Balances Expenditure)*

*Either of the two.

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