Accounting Treatment of Defence Bonds in NPO

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Confused, What is the accounting treatment of Defence Bonds in NPO (Not for profit organization) in accountancy

Confused, What is the Treatment of Defence Bonds in NPO (Not for profit Organisation chapter) class 12 CBSE, ISC, and State Boards

See, Defence Bonds are always given at the payments side of Receipts and Payments Account.

First Understand What are Defence Bonds

Defense Bonds are securities in terms of debentures issued by the government. If an NPO organization purchased Defence Bonds of a government organization it is termed as the investments.

It is the act of purchasing assets.

How Defence Bonds is recorded (Treated) in NPO

Thus Defence bonds if given at the payments side of receipts and payments account of NPO organization is considered as an asset.

Thus it is recorded at the Assets side of the Balance Sheet.

What is treatment of Interest received against Defence Bonds in NPO

But Interest received against Defence Bonds is considered as revenue receipts. Thus recorded at the Income side of Income and Expenditure Account.

Further Reading

Here is the link to various lectures on different topics.

Here is the theory session.

S.NTopics
1.NPO Basic Concepts and Theory
2.Receipts and Payments account of NPO format, features, meaning
3.Income and expenditure account of NPO format features meaning
4.Difference between income and expenditure account and Profit & Loss A/c
5.Difference between Receipts and Payments account and income and expenditure account
6.Difference between receipts and payments account and cash book
7.Difference between NPO and profit organisation class 12

This is the practical session of a Non-profit organization.

S.NTopics
1.What is Fund Based Accounting in NPO
2.Admission and Entrance fees Accounting Treatment
3.Accounting Treatment of Life Membership Fees in NPO
4.Accounting Treatment of Donation in NPO
5.Accounting Treatment of Legacy in NPO
6.Accounting Treatment of Government Grant in NPO
7.Accounting Treatment of sale of Old Newspaper in NPO
8.Accounting Treatment of sale of Old Sports Material in NPO
9.Accounting Treatment of Cost of Material Consumed in NPO
10.Accounting treatment of Sale of Assets in NPO
11.Accounting treatment of Subscription in NPO
12.Accounting treatment of Subscription written off in NPO

Here are the solution of NPO Chapter practical question solution of TS Grewal Book 2021 Edition

S.NNPO Chapter Solution
1.TS Grewal NPO Chapter solution 2021-22 Edition
2.DK Goyal NPO Chapter solution 2021-22 Edition
3.SK Sharma NPO Chapter solution 2021-22 Edition
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