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Which three final accounts are prepared by a not-for-profit organisation?
ATrading account, profit and loss account and balance sheet
BCash book, trial balance and the final balance sheet
CReceipts and payments, trading account and balance sheet
DReceipts and payments, income and expenditure and balance sheet
Answer & Solution
Correct answer: D. Receipts and payments, income and expenditure and balance sheet
1. At the end of the accounting period these organisations must ascertain their surplus or deficit and their financial position.
2. The textbook lists three final accounts for the purpose.
3. They are the receipts and payments account, the income and expenditure account, and the balance sheet.
4. A trading account is not prepared, because these concerns generally do not undertake business or trading activities.
_Source: TN HSC Class 12 Accountancy (Samacheer Kalvi, Govt of Tamil Nadu), Unit 2 "Accounts of Not-for-Profit Organisation", §2.1_
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