Commerce Aspirant A company prepares a Balance Sheet at the end of the accounting year to ascertain the financial position of the business. Even though a not-for-profit organisation does not engage in any sort of manufacturing or trading business and carries on its activities for the sole motive of welfare of the society, it is equally important … Read more
Just like a business concern prepares a Profit and Loss account at year-end to summarize the incomes and expenses, a not-for-profit organization prepares an Income and Expenditure account. The main objective of Income and Expenditure account is to determine the surplus or deficit for a particular accounting year. Features of Income and Expenditure Account – … Read more
The Receipt and Payment account notes is a summarised form of presenting the receipts and payments made by a non-trading concern or a non-profit organisation. It is simply a synopsis of the cash and bank transactions. It is prepared on the basis of the cash receipts earned and cash payments incurred as are recorded in … Read more
Not-for-Profit organisations are established to for the welfare of the society and not with the motive of earning any profits. But this does not mean that they are not required to prepare proper accounting records. To comply with the regulation of filing accounting records/ financial statements with the Registrar of Society and to ensure proper … Read more
Not for profit Organisation, are those organizations, that are established to work for the benefit of the society, or for promoting art and culture. Their main objective is to serve the society and earn profit in the due course. Thus, unlike other organizations they are not guided by the profit motive but earning profit is … Read more
Retiring of the Bill refers to the situation where the drawee upon whom the bill of exchange is drawn settles his account with the drawer prior to the expiry date agreed in the bill. This scenario takes place when the drawee of the bill has availability of excess funds which he can use to meet … Read more
The acceptor of the bill in certain situations may find it hard to repay the amount of bill on the due date . In such a situation, therefore the acceptor may request the holder of the bill , to substitute the old one with a new bill , which then would allow the acceptor of … Read more
Dishonour of Bill – Meaning Dishonour of the bill , means that the drawee of the bill of exchange on the date of maturity is not able to make the payment for the bill. In such a situation, the holder of the bill can then recover the amount from the drawer , or any other … Read more
Accounting for Bills of Exchange intends to cover the entries in the books of Drawer and Drawee . As Per Negotiable Instrument Act 1881, Bill of Exchange has following characteristics : – It is a negotiable instrument , containing an unconditional order in writing It is signed by maker (creditor/drawer) and directs another person (debtor/drawee) … Read more
Discounting and Endorsement of the Bill Bill of Exchange: Under the Negotiable Instruments Act 1881, a bill of exchange is defined as a written instrument which contains an unconditional order, directing a certain person to pay a defined sum of money to a specified individual or on the order of a certain person or to … Read more