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CS Professional · CSR and Social Governance · Financial and Non-financial Reporting of Different Non-Corporate Entities

Anand Mahila Mandal, a registered society, has a governing body that approved its annual accounts. A donor asks which document shows the society's assets and liabilities at year end, as distinct from its cash movements. Which statement is correct?

The Balance Sheet reports assets and liabilities as at the year-end date, whereas the Receipts and Payments Account only summarises actual cash and bank receipts and payments during the period. The Income and Expenditure Account shows surplus or deficit on an accrual basis.

  1. AThe Balance Sheet shows assets and liabilities at a date, while the Receipts and Payments Account summarises cash and bank transactions of the periodCorrect
  2. BThe Receipts and Payments Account shows assets and liabilities, while the Balance Sheet shows cash transactions
  3. CThe Income and Expenditure Account shows assets and liabilities at year end
  4. DOnly the minutes book shows assets and liabilities

Explanation

A non-profit entity typically prepares a Receipts and Payments Account (cash basis summary), an Income and Expenditure Account (accrual surplus or deficit) and a Balance Sheet (position at a date). Option B reverses the roles of the two statements.

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