NCERT-solution for class-12 Accountancy chapter Not for profit organisation-[all important formats]

Class 12 chapter not for profit organisation

Define NPO

NPO’s are voluntary organisation founded with objective of promoting, art culture , education and other social and charitable purpose without any intention of earning profit. For Example, hospital, college , schools, universities, religious organisation, culture institution , professional accounting bodies , i:e ICAIICSI etc,

Difference between NOP’S and profit making organisation

NPO’Sprofit making entities
1.the ultimate goal is to serve the community in -terest1.the ultimate goal is the earn profit receives its fund in the form of donations subscriptions, etc known as capital receives its fund from its owners or partners , known as capital
3.their final accounts includes receipt and payment A/c income and expenditure A/c and balance sheet 3.their final account includes trading A/c , profit & loss A/c and balance sheet
4.the net result of the activities of such entities is known as the surplus/ deficit 4.the net result of the activities of such entities is known as the profit / loss

Difference between receipts and payment account and income and expenditure A/c

Receipts and payment accountIncome and expenditure account is prepared on the basis of cash bookit is like P& L a/c i:e it is a nominal A/c is real accountit records only revenue transactions related to current year i:e after adjustment records all types of transactions whether revenue or capital nature and relates to any year3. if follows accrual basis of accounting follows cash basis of accounting 4. if does not have an opening balance. at the end it shows the surplus, i;e excess of inco me over expenses or deficit i:e excess of expense over income
receipts and payment account

Important Formats

Total subscription / Income / Expenses for Current year

1st january 20–(opening )31st (December)20–(closing)
outstanding (-)xxxxoutstanding (+)xxxx
(+) Advance / prepaidxxxx(-) Advance / prepaid xxxx
Total subscription current year

subscription Account

To balance b/d ( the beg)
To Income & expenditure A/c (bal. fig)
To balance c/d (Adv, at the end )
by balance b/d (Adv. at the beg)
by cash A/c (sub. received during the year)
by bad debts (if any)
by balance c/d (out. at the end )

statement showing calculation of subscription

Total subscription received during the year (whether relates to any year)xxxxxx
less: subscription O/S at the beg. of current yearxxxxxx
less: Advance subscription received during the current year(relates to any future period )xxxxxx
Add:O/S subscription at the end of current year (including sub: o/s for previous year till the end of current year)xxxxxx
Add: o/s subscription received in advance at the end of current yearxxxxxx
subscription to be shown in income and expenditure a/c xxxxxx

Note: subscription o/s as on means total o/s subscription on a particular date (including previous year o/s if any till date ) and subscription o/s for the year means only to current year, for at the end we have to add o/s for previous year till date in this

Note: if purchase of consumable item is given instead of payment than o/s creditors and advance paid to creditors will not be adjusted (add or less) in the above format. in this case consumed amount will be =op stock+purchases -closing stock-sale of consumable item (if any)

Creditors Purchase

payment made to creditors xxxxx
Add: closing balance of creditors xxxxx
less: opening balance of creditors xxxxx
credit Purchases of consumable item xxxxx

Receipt and payment account

Receipts Amount payments Amount
balance b/d
balance b/d xxxxxcash at bank (overdraft)xxxxx
cash in hand xxxxxxcapital payments:xxxxx
cash at bank xxxxxxbuilding constructions xxxxx
capital receipts xxxxxsports equipments or materials xxxxx
legaciesxxxxxcost of leasehold land xxxxx
sale of office furniture
sale of sports equipments
Donation for special purpose i:e building , prizes etc life membership fees sale of investments endowment fund receipts xxxxxadvance for purchase of buildingsxxxxx
Receipts on account of special funds e:g prize fund, tournament fund etc, xxxxxgovernment’s loan xxxxx
interest on specific fund investment entrance fees. furniture xxxxx
Revenue Receipts:xxxxxxrevenue paymentsxxxxx
subscriptions xxxxxprizes paid xxxxx
general donations xxxxxentertainment expenses xxxxx
proceeds from entertainments xxxxxprinting and stationery xxxxx
interest or dividendsxxxxxnewspapers and periodicals xxxxx
sale of old newspapers, waste papers etc, xxxxxRepairs xxxxx
Miscellaneous receipts xxxxxpostage xxxxx
balance c/d xxxxxhonorarium xxxxx
cash at bank (bank overdraft)xxxxxexpenses on special food to patientsxxxxx
Insurance , rent salaries xxxxx
audit feexxxxx
Telephone, electric charge xxxxx
gardening xxxxx
bar expenses xxxxx
up-keep of lawnsxxxxx
municipal taxes xxxxx
charity xxxxx
printing of year bookxxxxx
Drawings xxxxx
balance c/d (closing balance )xxxxx
cash in hand xxxxx
xxxxxcash at bank xxxxx

Note; there will be either or the two amounts i;e bank overdraft or cash at bank and not both.

Income and expenditure Account

ExpenditureAmountIncome Amount
expenses account(e,g salary)
total salaries paid during the year xxxx
Add: outstanding at the end xxxxx
less: outstanding in the beginning xxx(or accrual amount paid for last year)
Add: advance paid in the previous year xxxx
less: advance paid for the salaries in the current year xxx
salary of the year xxxxx
expenses on consumable xxxxx
materials:(e:g, stationery)xxxxx
opening stock of stationery xxxx
Add: purchases during the year
less: creditors for stationery in the beginning xxx
Add: creditors for stationery at the end xxxx
Add: advance payments for stationery last year xxx
less: advance payments for stationery in the current year xxx
less: stock of stationery at the end xxxx
stationery actually consumed xxxx
loss on the sale of an assets,
book value of the assets
less: sale price xxx
net loss on sale
other expenses and Iosses after necessary adjustments xx
expenses for specific purpose (e:g cinema shown )
expenses paid. xxxx
less: collection xxxx
net expenses of specific item xxxx
Depreciation xxx
excess of income over expenditure to be added to capital fund in the balance sheet (bal, figure)
Income account (e;g subscriptions)
total amount of subscription received during the year xxxx
Add: outstanding at the end
less: outstanding in the beginning xxx(or actual amount of last year )
Add: advance received this year xxxx
current Income xxx
profit on sale of assets:xxxx
sale price of the assets xxxxx
less: book value of the assets sold xxx
net profit on sale xxx
Receipts for specific item xxxx
(cinema shown )
less: amount spent xxxx
net Income and gains with adjustments xxxx
excess of expenditure over income to be deducted from the capital fund in the balance sheet (balance figure)xxx

Balance sheet.

Liabilities Amount Assets Amount
capital fund:Assets:
opening balance xxlast balance xxxx
Add: excess of income over expenditure xxx Add: purchase in the current year xxxx
less; excess of expenditure over income xxxclosing balance xxxx
capitalised income of xxxstock of xxxxx
the current year on account of; xxxconsumable materials xxxx
legacies xxxxbalance as given in the questionxx
life membership fees (these may be added to capital fund too)last balance xxxx
special fund / donations last balance (if any) xxxxAdd: purchase during the year xxx
Add: Receipts for the item during the year xxxxxless: value consumed during the year xxxx
Add: Income earned on fund investment xxxxclosing balances:xxxx
less: expenses paid out of fund / donation xxxxcash in hand xxxx
creditors for purchase of supplies xxxxxcash at bank in xxxx
bank overdraft (at the end)xxxxxcurrent account, xxxx
outstanding expenses last balance b/d xxxxxfixed
less: paid during the year xxxxxDeposit account etc, xxxxx
Add: outstanding at the end xxxxxoutstanding income last balance xxxxx
Income Received in advance at end xxxxless : Received in the current year xxxx
net balance xxxx
pre-paid expenses at the end xxxx

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