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Let us understand more about the income and expenditure account which is prepared by a non profit organization.
Income and expenditure statement for non profit organisation. I it is a nominal account and summarizes all expenditures and incomes of a non profit organization. Also called as statement of cash flows this means that the places in which the revenue of the company is going needs to be maintained properly. These financial statements communicate the activities the nonprofit engaged in throughout the period and the financial position of the nonprofit at the end of the period. When a non profit firm does so it needs to prepare an income and expenditure account which can help it in ascertaining the surplus earned or deficiency incurred during a period.
Income and expenditure account shows transactions of capital nature for the accounting year. A formal financial statement for a nonprofit organization shows the amount of expenditure for the current year and the prior year as well. Download cbse class 12 accountancy financial statements of not for profit organisations mcqs in pdf accountancy chapter wise multiple choice questions free 1. The basic features of income and expenditure account are as under.
Ii based on accrual concept all items of revenue and expenditure are matched and recorded in this account. Printable nonprofit financial statements.
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