| IT HAVE TWO WINGS | |
| SPECIAL DONATION/FUND | GENERAL DONATION/FUND |
| (Where the name specified:- Like:-building fund. Fund for tournament) |
(Where the name is not mentioned) |
| TREATEMENT | TREATEMENT |
| IN THE BALANCE SHEET IN THE ---LIABILITIE SIDE |
INCOME & EXPENDITURE --- INCOME SIDE |
5. HONORIOUM:-Special payment made to a person who is not regular employees of the organization and rendered some special service is called honorioum. This is considered as revenue in nature & debited to income& expenditure a/c.\
6. PURCHASE OF CONSUMABLE ITEMS:- As per name concern it means the items which organize consume reguralry.E.G. FOR HOSPITAL-IT IS A MEDICINE.
TREATEMENT :-
| CALCULATION OIF MATERIAL CONSUMED DURING THE YEAR | |
| Total payment made/Purchase during the year | ++++ |
| ADD:-Opening Stock +++ : Creditors o/s at the end of the current year3 +++ : Advance payments made last year +++ |
++++ |
| LESS:-Closing stock1 +++ : Creditors o/s at the beginning +++ : Advance payment made in current year2 |
------- |
| AMOUNT TO BE DEBITED TO INCOME & EXPENDITURE A\C. | ++++++++ |
| BALANCE SHEET | |||
| Creditors at the End3 | ++++ | Closing Stock1 Advance Payments2 | +++++ |
REMEMBER:- The above calculations may also be made in the of `H` (HORIZONTAL FORM)
| 3.BALANCE SHEET(OPENING/MEMORUNDUM) | |||
| LIABILITIES | AMT | ASSETS | AMT |
| -Expenses o/s at the end of Last year | +++ | Cash(op. bal) Subscription O/S at the end of last year |
+++ +++ |
| -Subscription received inadvance during last year | +++ | Prepaid expenses made last year |
+++ |
| - Creditors at the end of last year |
+++ | ALL ASSETS BALANCE | +++ |
| CAPITAL FUND (B/F ) | +++ | (AS LAST YEAR) | |
REMEMBER :-Just One Thing To Be Remembeer In Opening Balance Sheet And I.E.It Is Record Only Previous Year Balances/Beginning Of The Current Year Balances And No Such Depriciation Will Be Subscrated On The Fixed Assets Because That Balances After Depriciation.
| BALANCE SHEET (CLOSING) | |||
| LIABILITIES | AMT | ASSETS | AMT |
| -Expenses o/s at the end of Current year | +++ | Cash(op. bal) Subscription O/S at the end of Current year |
+++ +++ |
| -Subscription received inadvance during Current year | +++ | Prepaid expenses made Current year |
+++ |
| - Creditors at the end of Current year |
+++ | ALL ASSETS (including prev.year assets) | +++ |
| CAPITAL FUND (B/F ) | +++ | Less:-DEPRICIATION | |
TYPES OF FUNDS(IMP)
1 .UNRESTRICTED FUND/CAPITAL FUND:-The fund which does not carry any restriction any management can use their fund to fulfill the objective of NPO.This fund is also called general fund/capital fund
2. RESTRICTED FUND/SPECIAL FUND:-When some restriction is put on the use of the fund by the fund providers i.e. called special fund
FOR EXAMPLE: - Rs.3, 00,000. Given to B.V.M. school by the management of `AARTI CINEMA `for the education of the children from weaker section of the society in this the donors has specified the purpose.
3. ENDOWMENT FUNDS :-This fund is created from legacy, bequest, or gifts received by NPO. We can say only income earned by that asset which is donated by the donor. ----It is capital receipts so it will be recorded on liability side of balance sheet.
