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.
Here is the link to various lectures on different topics.
Here is the theory session.
This is the practical session of a Non-profit organization.
Here are the solution of NPO Chapter practical question solution of TS Grewal Book 2021 Edition
|S.N||NPO 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|