Which option shows the correct accounting treatment given in the nonprofit organization accounting? (i) Small donations - revenue receipts (ii) Subscriptions - revenue receipts
Both (i) and (ii)
The correct answer is option 2. Both small donations and subscriptions are treated as revenue receipts in nonprofit organizations because they are regular income that is used for operational purposes rather than capital investment.
Important Questions from Receipts & Payment Account
Receipts and payments account includes which of the following?
(i)All receipts and payments related to the current year.
(ii) All receipts and payments related to the previous or future year(s).
(iii) All receipts and payments irrespective of the nature (both revenue and capital).
Generally, non-profit organisations prepare which of the following?
i) Receipt and Payment Account
ii) Income and Expenditure Account
iii) Balance Sheet
The record of cash transactions by non-trading concerns is shown in
Which of these books is not related to ' Non Trading concerns ' ?
