Company Accounts Financial Statements NP TS Grewal Solutions: Class 12 [CBSE]

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BookTS Grewal Accountancy
Class12
Chapter1 – Company Accounts Financial Statements of Not-for-Profit Organisations
Volume1

TS Grewal Class 12 Solutions Chapter 1

TS Grewal Class 12 Solutions Chapter 1
TS Grewal Class 12 Solutions Chapter 1
TS Grewal Class 12 Solutions Chapter 1
TS Grewal Class 12 Solutions Chapter 1
TS Grewal Class 12 Solutions Chapter 1
TS Grewal Class 12 Solutions Chapter 1
TS Grewal Class 12 Solutions Chapter 1
TS Grewal Class 12 Solutions Chapter 1
TS Grewal Class 12 Solutions Chapter 1
TS Grewal Class 12 Solutions Chapter 1
TS Grewal Class 12 Solutions Chapter 1
TS Grewal Class 12 Solutions Chapter 1
TS Grewal Class 12 Solutions Chapter 1
TS Grewal Class 12 Solutions Chapter 1
TS Grewal Class 12 Solutions Chapter 1
TS Grewal Class 12 Solutions Chapter 1
TS Grewal Class 12 Solutions Chapter 1
TS Grewal Class 12 Solutions Chapter 1

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TS Grewal Class 12 Vol 1 Chapter 1 – Company Accounts Financial Statements of Not-for-Profit Organisations

Welcome, Class 12 accountancy students! Let’s dive deep into one of the fundamental chapters of your syllabus, which deals with the financial statements of Not-for-Profit Organisations (NPOs).

Introduction to Not-for-Profit Organisations (NPOs)

Not-for-Profit Organisations are those entities established for a purpose other than making profits for its members. Examples include charities, clubs, and societies. The primary difference between a regular business entity and an NPO is the motive. While businesses aim for profits, NPOs aim to provide services.

Receipts and Payment Account

It’s similar to a Cash Book. This account shows the summary of cash transactions, including both receipts and payments, over a particular period. Features:

  • It starts with the opening balance of cash and bank balances.
  • It ends with the closing balance of cash and bank.
  • It records both capital and revenue nature receipts and payments.

Income and Expenditure Account

This account resembles the Profit & Loss Account of a trading organisation. It shows the surplus or deficit during a particular period. Features:

  • It only includes revenue nature transactions.
  • It follows the accrual concept, meaning it records all incomes and expenditures of the year, whether received or paid or not.

Formula: Surplus (or Deficit) = Total Income – Total Expenditure

Balance Sheet

For NPOs, a Balance Sheet showcases the financial position as of a specific date. Features:

  • It lists assets on one side and liabilities on the other.
  • It includes both capital and current liabilities and assets.

Subscriptions

These are amounts due from members as a periodic payment to support the NPO.

Formula for Subscription in Income and Expenditure Account: Subscription Received = Subscription of Current Year ± Outstanding Subscription of the current year – Outstanding Subscription of the previous year + Subscription received in advance of the previous year – Subscription received in advance for the next year

Important Notes

  • Capital Fund: It’s similar to the owner’s equity or capital in a business. It represents the net assets of the NPO. Changes are made to it due to surplus or deficit.
  • Treatment of Specific Donations: These are treated as liabilities unless they’re for a specific purpose. If for a specific purpose, it’s shown on the asset side.
  • Legacy: A legacy is an amount bequeathed by deceased members. If for a specific purpose, it’s shown on the assets side; otherwise, added to the capital fund.

TS Grewal Solutions Class 12 Chapter 1 PDF Download

TS Grewal’s Accountancy book is a popular textbook used by students in Class 12th studying Commerce stream. It is known for its clear and concise explanations of accounting principles and practices. As previously mentioned, using TS Grewal Class 12 Solutions can make your studies more effective and productive. In order to make your studies more convenient and productive for you, we have presented you with Company Accounts Financial Statements of Not-for-Profit Organisations Class 12 TS Grewal Solutions PDF for free.

If you want to download the pdf solution, then you can click on the download button given below. The download button will take you to a new page, where you can easily download your TS Grewal Class 12 Solutions PDF for absolutely free of cost.

Conclusion

TS Grewal Class 12 Chapter 1 introduces students to the uniqueness of accounting for NPOs. Grasping these concepts is crucial for anyone wishing to delve into the nonprofit sector or simply to broaden their understanding of accountancy. It’s also an excellent reflection of the practical world where not every entity aims for profit.

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