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Non-Profit organization accounting

Accountancy

What is the treatment for entrance fees in NPO? Is it: - treated as an income and included in the income and expenditure account - OR is it added to the capital fund in the balance sheet? Also how is Sports material treated in NPO accounts? Is it: - treated as an asset and included in balance sheet assets side - Or recorded in the expenditure column in the income and expenditure account?

Asmita Kar

CA Foundation

★ 7K+

22-Dec-23 07:17

458

Answers (14)

Entrance fees is paid when person enter into organization so it is treated as income and credited to income and expenditure account

sai t

CA Foundation

★ 2K+

22-Dec-23 08:23

I am sorry entrance fees is paid when person enter into any organization so it is paid at once it should be capitalized and should be added to capital fund it anything specified in question it should be written as specified

sai t

CA Foundation

★ 2K+

22-Dec-23 08:28

sai t

Reduce from capital fund it's typo mistake

sai t

CA Foundation

★ 2K+

22-Dec-23 08:28

1.Entrance fees is treated as an income and included in the income and expenditure account 2.Sports material is recorded in the expenditure column in the income and expenditure account of NPO

Pratik Shinde

CA Foundation

★ 375

22-Dec-23 08:29

sai t

Reduce from capital fund it's typo mistake

It's an income to organization so added

sai t

CA Foundation

★ 2K+

22-Dec-23 08:29

Pratik Shinde

1.Entrance fees is treated as an income and included in the income and expenditure account 2.Sports material is recorded in the expenditure column in the income and expenditure account of NPO

It is capital fund na

sai t

CA Foundation

★ 2K+

22-Dec-23 08:30

Pratik Shinde

1.Entrance fees is treated as an income and included in the income and expenditure account 2.Sports material is recorded in the expenditure column in the income and expenditure account of NPO

It is clearly given in icai material as capital fund

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sai t

CA Foundation

★ 2K+

22-Dec-23 08:31

sai t

It is capital fund na

But it's a revenue receipt

Pratik Shinde

CA Foundation

★ 375

22-Dec-23 08:32

sai t

It is clearly given in icai material as capital fund

Source:Google

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Pratik Shinde

CA Foundation

★ 375

22-Dec-23 08:33

Please follow icai module because in google persons give different answers based on their opinion General for entrance fees it's purpose is important it is clearly mentioned in icai module please refer it once

sai t

CA Foundation

★ 2K+

22-Dec-23 08:38

Entrance fees - The question will mention capitalisation percentage in most cases. If it is not given, you can capitalise fully and add to capital fund Sports Material - Expense. If sports equipment balances are given, amount of expense - Op bal + purchases - cl bal of sports equipment.

CA Suraj Lakhotia

Admin

22-Dec-23 09:53

CA Suraj Lakhotia Admin

Sir can you please explain the main difference between revenue and receipts I am just confused regarding this concept

sai t

CA Foundation

★ 2K+

22-Dec-23 09:56

sai t

Sir can you please explain the main difference between revenue and receipts I am just confused regarding this concept

Revenue is generally recurring in nature.

CA Suraj Lakhotia

Admin

22-Dec-23 10:25

Thank you sir

Thread Starter

Asmita Kar

CA Foundation

★ 7K+

22-Dec-23 10:58