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TS Grewal Solutions Class 12 Accountancy Volume 1 Chapter 1

Q: 2. What do the following terms mean when it comes to a Not-For-Profit organization: (i) Subscriptions Received in advance (ii) Outstanding Subscriptions (iii) Tournament Fund

The three terms have been explained below(i) Subscriptions Received in Advance: On the liabilities side of the balance sheet, subscriptions received in advance for the following year are shown.(ii) Outstanding Subscription Revenue and Expense A/c: Outstanding Subscription Revenue and Expense A/c is reported on the debit side and is also reflected on the Assets Side of the current year's Balance Sheet.(iii) Tournament Fund: The tournament Fund will be evaluated in light of the debt side of the balance sheet adjustments.

Q: 3. Explain the following terms: 1) Capital Fund 2) Legacy 3) Specific Donations

Capital Fund: The Capital Fund has no restrictions on how it can be used. In other words, management has complete discretion over how the funds are used to further the company's mission.Legacy: The sum received as a donation by a non-profit organization under the will of a deceased citizen is known as a legacy. The donor may or may not specify the conditions for its use. The 'Common Contribution' is paid if no conditions are indicated. If a provision is stated, it is counted as a 'Unique Donation.'Particular Gift: A specific donation is one in which the giver specifies the purpose for which the gift will be utilized. Donations, for example, received Rs. 2,00,000 for a library. It signifies that the donation received can only be used for the library and that it is a one-time gift.

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TS Grewal Solutions Class 12 Accountancy Volume 1 Chapter 1

Last updated date: 25th Apr 2024

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Class 12 Accountancy TS Grewal Solutions Volume 1 Chapter 1 - Company Accounts Financial Statements of Not-for-Profit Organisations

Accounting norms and practices of non-profit organizations are different from profit-making entities. The rate of taxes, financial statements, and bookkeeping are dissimilar to regular business. Unlike other business entities, a non-profit does not thrive for profit but aims at providing service to fellow members and the general public. TS Grewal Class 12 Solutions Volume 1 Chapter 1- Company Accounts Financial Statements of Not-for-Profit Organizations explain this accounting system's necessity and importance. As these are not for profit, raise funds from the public and receive grants from the government, it is imperative to maintain a transparent accounting system. TS Grewal Solutions Class 12 Accountancy Volume 1 Chapter 1 states the meaning of non-profit organizations and explains various accounting systems.

Overview of Chapter 1- Company Accounts Financial Statements of Not-for-Profit Organizations

Non-profit organizations' primary objective is to render service to fellow beings; it can be a hospital, sports or recreational club, church, temple, or to promote art, culture, and education. TS Grewal Class 12 Solutions 2024-25 Volume 1 NPO covers every aspect of accounting for non-profit organizations. The source of income comes from grants provided by governments, subscriptions, and donations from the public. The PDF also describes how to prepare receipts and payments, income and expenditure, balance sheet receipts and payment accounts.

TS Grewal Class 12 Solutions 2024-25 Volume 1 NPO educates a student on how to post cash payments on the credit side irrespective of capital or revenue nature, regardless of current, previous, or subsequent fiscal year. Only actual cash receipts and payments are recorded in the accounting system. Depreciation and significant expenditures are eliminated. It clarifies that nominal accounts like; income and expenditure accounts are treated alike as profit and loss accounts of business organizations.It also explains the accrual concept of accounting.

Illustration

Income and expenditure accounts are prepared in the same manner as profit and loss accounts. NPO Class 12 TS Grewal solutions 2024-25 clarify the credit balance(excess of income over expenditure), and debit balance(a lot of expenditure over income). The chapter elucidates the term ‘legacy’, where an organization receives a property on the donor's demise through a valid will. If the entity is one of the will's beneficiaries, the donation is referred to as legacy. Entrance or admission fee is paid by a member while joining the organization, which is recurring and treated as income. Grant is the financial aid provided by a government to the non-profit organization and posted as revenue income in the income and expenditure account. Not-for-profit organization Class 12 Solutions TS Grewal 2024-25 covers every aspect of these organizations' accounting systems systematically.

TS Grewal Solutions Class 12 Volume 1 Chapter 1 for the Best Understanding to Students

The author explains the accounting norms of non-profit organizations in a clear, comprehensive manner with numerous examples. The solved examples help students understand how the accounting system works for these organizations and differentiate them from regular accounting norms.

Why Should the Students Study from the TS Grewal Solutions Class 12?

TS Grewal Solutions Class 12 is one of the popular resources for the preparation of Class 12 Accountancy.
The solutions are written in a simple and understandable manner.
It is available for free.
It is designed as per the CBSE Syllabus and guidelines.
Chapter-wise solutions are provided in this book.

Conclusion

Class 12 accounts Chapter 1 solutions NPO give the student insight into nonprofit organizations' accounting norms and practices. This chapter, curated by TS Grewal and other experts, helps students understand different accounting aspects and score outstanding marks.

Important Topics Links

Some important topics links related to this chapter are provided below.

Commerce Related Links

FAQs on TS Grewal Solutions Class 12 Accountancy Volume 1 Chapter 1

1. What will you learn in this chapter - Company Accounts Financial Statements of Not-for-Profit Organizations?

These Class 12 solutions for not-for-profit organizations are based on the most recent Class 12 TS Grewal Accountancy book used by commerce stream students for the current year.

You will be able to grasp the basics of non-profit organizations and the procedure of accounting for them after reading this chapter. Students should be aware that the accounting process for businesses differs slightly from that of non-profit organizations. This chapter, together with the quizzes, in the end, will assist students in fully comprehending the accounting process. You can learn more about this topic by clicking here.

2. What do the following terms mean when it comes to a Not-For-Profit organization: (i) Subscriptions Received in advance (ii) Outstanding Subscriptions (iii) Tournament Fund

The three terms have been explained below

(i) Subscriptions Received in Advance: On the liabilities side of the balance sheet, subscriptions received in advance for the following year are shown.

(ii) Outstanding Subscription Revenue and Expense A/c: Outstanding Subscription Revenue and Expense A/c is reported on the debit side and is also reflected on the Assets Side of the current year's Balance Sheet.

(iii) Tournament Fund: The tournament Fund will be evaluated in light of the debt side of the balance sheet adjustments.

3. Explain the following terms: 1) Capital Fund 2) Legacy 3) Specific Donations

Capital Fund: The Capital Fund has no restrictions on how it can be used. In other words, management has complete discretion over how the funds are used to further the company's mission.

Legacy: The sum received as a donation by a non-profit organization under the will of a deceased citizen is known as a legacy. The donor may or may not specify the conditions for its use. The 'Common Contribution' is paid if no conditions are indicated. If a provision is stated, it is counted as a 'Unique Donation.'
Particular Gift: A specific donation is one in which the giver specifies the purpose for which the gift will be utilized. Donations, for example, received Rs. 2,00,000 for a library. It signifies that the donation received can only be used for the library and that it is a one-time gift.

4. What are some of the characteristics of Not-For-Profit organizations?

The following are some of the characteristics of Not-For-Profit organizations.

These organizations exist to provide a service for the improvement of a society free of cost or at a low cost. The services range from education to health care to recreation.
The goal is to benefit a specific community or society, not to make money.
These organizations are philanthropic societies, and the people who subscribe to them are referred to as members.
Trustees or an executive committee of members elected by the organization's members handle the organization's principal functions.

5. How to learn about company accounts and financial statements of Not-for-profit organizations?

To learn about company accounts and financial statements of Not-For-Profit organizations, you need to learn about the basics of the topic. It is important to know about the properties of Not-For-profit organizations. The terms like the capital fund, legacy and particular gift. It is important to have a strong foundation so that you can acquire more knowledge about the topic. To get an idea of your understanding of the topic, you can solve sample papers. To get free study materials, you can check out the Vedantu App and Website.