Accounting for Peculiar Items in Nonprofit Organizations

This video tutorial covers key accounting concepts for nonprofit organizations (NPOs), including the treatment of honorarium payments, endowment funds, government grants, special funds, and stationary expenses. Each section provides detailed explanations of these peculiar items, their accounting treatment, and their impact on financial statements. The tutorial emphasizes the importance of understanding these concepts for accurate preparation of NPO final accounts.

What is the nature of the payment of honorarium in nonprofit organizations?

• Capital expenditure

• Revenue expenditure

• Asset

• Liability

Where is an endowment fund shown in the financial statements of a nonprofit organization?

• Cash flow statement

• Income and expenditure account

• Liability side of the balance sheet

• Asset side of the balance sheet

How are recurring government grants treated in the accounts of a nonprofit organization?

• As capital receipts

• As assets

• As revenue receipts

• As liabilities

What is the treatment of a government subsidy received by a nonprofit organization?

• Treated as an asset

• Treated as a capital receipt

• Treated as revenue income

• Treated as a liability

What happens to the income from investments in special funds?

• Credited to income and expenditure account

• Added to the respective special fund

• Transferred to capital fund

• Used to pay off liabilities

How is the cost of stationary consumed calculated?

• Purchases plus opening stock minus closing stock

• Opening stock plus purchases minus closing stock

• Purchases minus opening stock plus closing stock

• Opening stock minus purchases plus closing stock

Where is the closing stock of stationary shown in the financial statements?

• Cash flow statement

• Income and expenditure account

• Asset side of the balance sheet

• Liability side of the balance sheet