Balance
sheet is prepared for not-for –profit organization to ascertain the financial
position of the organization. it is prepared on the same pattern as in the case
of profit making organization. The only difference is that “Capital fund” or
“General Fund” is shown in place of Capital and Surplus or deficit as per
income and expenditure account will be added or deducted from the capital fund.
Note: if
in a question capital fund in the beginning of current year is not given then
we have to prepare Opening Balance sheet to ascertain it.
