Balance Sheet from Receipt and Payment
Balance sheet of a non profit organisation can easily made from receipt and payment account because all most all the transactions of non profit organisation are in the form of cash . So , if we have previous year balance sheet and current year receipt and payment account , we can easily prepare balance sheet . Now I am explaining its steps :
1st Step : Get the Raw Data .
First of you have to keep previous year balance sheet and current year receipt and payment account near to you . Both will be helpful for preparing balance sheet . In balance sheet , we show all the capital items which have been shown in the receipt and payment account and also bring previous year assets and liabilities .
2nd Step : Show the Asset and Liabilities from Receipt and Payment Account
Now , we have explaining , how you can convert the payments of receipt and payment account into the assets of Balance sheet .
a ) Credit side of receipt and payment account will be payment side . In this side , you have to take capital nature expenses and closing balance . All other revenue expenses payments should leave . Add new bought asset in the particular asset ’ s opening balance which we can take from previous year balance sheet . If any fixed asset has been sold , deduct it in same fixed asset . After this , deduct the depreciation .
Now , deduct the depreciation and show it in the fixed asset side . For example we are taking one fixed asset Furniture opening balance xxxx
Add new bought xxxx ------------------------------------- Total furniture xxxx
Less sale of scrap furniture xxxx . --------------------------------------