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