alleryStart learning →Not-for-profit organisations in India may be registered under which provision named in the textbook?
ASection 8 of the Indian Companies Act, 2013
BSection 25 of the Indian Contract Act, 1872
CSection 44 of the Indian Partnership Act, 1932
DSection 12 of the Indian Trusts Act of 1882
Answer & Solution
Correct answer: A. Section 8 of the Indian Companies Act, 2013
1. The chapter opens by scoping which organisations it covers.
2. It notes that not-for-profit organisations registered under Section 8 of the Indian Companies Act, 2013 must prepare their income and expenditure account and balance sheet as per Schedule III to that Act.
3. The unit then states that it deals only with organisations not registered under that Act.
4. That is why the formats taught here do not follow Schedule III.
_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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