Scribd
Upload
32 views1 page

GR 568

The document discusses financial statements and accounts for not-for-profit organizations. It states that the receipts and payments account shows total income and expenditures for the year on a cash basis. The income and expenditure account shows only revenue items and the excess of expenditures over income is deducted from the capital fund. Scholarships provided by the government and payment of honorariums are expenses charged to the income and expenditure account, while proceeds from the sale of old newspapers are considered income.

Uploaded by

Sbmtab12
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
32 views1 page

GR 568

The document discusses financial statements and accounts for not-for-profit organizations. It states that the receipts and payments account shows total income and expenditures for the year on a cash basis. The income and expenditure account shows only revenue items and the excess of expenditures over income is deducted from the capital fund. Scholarships provided by the government and payment of honorariums are expenses charged to the income and expenditure account, while proceeds from the sale of old newspapers are considered income.

Uploaded by

Sbmtab12
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
You are on page 1/ 1

Chapter 1 Financial Statements of Not-for-Profit Organisations 1.

55

sale of old newspapers are taken as income.


Proceeds from the
Receipts and Payments Account shows total income and expenditure.
Only revenue nature items are shown in the Income and Expenditure Account.
Scholarships granted to students provided by government is debited to Income and Expenditure Account.
Payment of honorarium is a revenue expenditure.

Any expenditure relating to special fund is deducted from that special fund.
Loss on sale of fixed asset is debited to Income and Expenditure Account. Whereas gain (profit) on sale
of fixed asset is credited to Income and Expenditure Account.

-in-the blanks with appropriate words:


Receipts and Payments Account is ofthe year's
In the Receipts and Payments Account,receipts are shown on the side.
Credit balance in the Income and Expenditure Account means excess of Over

)Income and Expenditure Account shows all incomes and expenses for
an accounting year.
Subscriptions received in advance by a club are shown in the side of the Balance Sheet.
) Life Membership Fees received by a club is shown in the
i) Excess of expenditure over income is- Capital Fund in the Balance Sheet.
i) Income and Expenditure Account is prepared by . entities
Match Fund of R1,000 exists in the books. Match expenses for the year amount to R1.200.
will be debited to the Income and Expenditure Account.
)If expenditure is 16,000 and surplus credited to Capital Fund 4,500,income is
Match the following:
1. Receipts and Payments Account (a) Add to Capital Fund
2. Income and Expenditure Account (b) Revenue Income
3. Life Membership Fee (c) Non-profit Organisation
4. Subscription (d) Opening Balance Sheet
5. Sports Club (e) Real Account
6. Opening Capital (f) Revenue Expenses and Income

ltiple Choice Questions (MCQs)


lect the correct alternative:
1.
Receipts and Payments Account is prepared on
(a) Cash Basis. (b) Time Basis.
(c) Accrual Basis. (d) Sales Basis.
2. Not-for-Profit Organisations prepare
(a) Income and Expenditure Account. (b) Trading and Profit and Loss Account.
(c) Trading Account. (d) Both (a) and (c).

You might also like