NCERT Solutions for Class 12 Accountancy Part 1 Chapter 1 Accounting for Non-Profit Organizations: The first chapter for Accounting for CBSE class 12 is Accounting for Non-Profit Organizations. It covers all the concepts related to the accounting of not-for-profit organizations. The chapter begins with the characteristics of a non-profit organization. The various areas that non-profit organizations serve include education, healthcare, entertainment, sports, and the like. As the CBSE Class 12 Board Exam students have already acquainted themselves with accounting fundamentals in the 11th grade, the chapter is a continuation of what they have learned.
- All you need to know about NCERT Solutions for Class 12 Accountancy
NCERT Solutions for Class 12 Accountancy Part 1 Chapter 1 PDF: Accounting for Not for-Profit Organisations
NCERT Solutions for Class 12 Accountancy Not-for-Profit Organisation PDF
NCERT Solutions for Chapter one in Accountancy are also available in PDF format, and students can download a copy for themselves. The solutions introduce the subject and a summary of the chapter, which you will find in the following section.
NCERT Solutions for Class 12 Accountancy Part 1 Chapter 1 Accounting for Not-for-Profit Organisation: Overview
Wills, donations, and membership fees form the primary sources of income for these organizations. Not-for-profit organizations raise funds with the help of various sources such as capital or general funds. However, they don’t distribute the surplus wealth that they generate among their members.
The organization’s reputation, and not the wealth that they generate, matters the most to them. These organizations gain a reputation by contributing to society. Non-profit organizations also account for the wealth that they generate at the end of every year. They keep records of all the cash they receive and all the payments they make in a cash book. For instance, all the payments they receive, such as those for subscriptions, are entered on the cash book’s debit side. In contrast, any expenses they incur, such as rent, electricity, food, or even paying their employees, are entered on the cash book’s credit side.
However, any cost they incur during the month, such as rent or electricity, comes in the bill payment section of their cashbooks. Also, while the payment accounts of these organizations show their cash in-flow, in terms of how much money they get from various sources, the actual bank balance they are left with at the end of the year shows the money they owe as loans or other such payments. In this way, the chapter tells students all about the accounting of the cash in-flow of non-profit organizations.
Marks Weightage of Class 12 Accounts Chapter 1
Unit 1 of Accountancy covers Chapter 1 of Accounts Class 12th. This unit is worth a total of 12 points.
Key Concepts Covered In NCERT Solutions for Class 12 Accountancy Part 1 Chapter 1
- Meaning and characteristics of Non-profit organization
- Accounting records of NPO
- Balance sheet
- Incidental trading activity
- Income and expenditure account based on the trial balance
- Income and Expenditure account
Highly Important Links For CBSE Class 12 Accountancy
NCERT books and solutions are available for download as PDF. So, you can download them here, and start preparing for the exams:
Benefits of NCERT Solutions for Class 12 Accountancy Not-for-Profit Organisation
There are few benefits of studying NCERT solutions, which you will find in the following section.
1. They Help you to Ace the Board Exams
NCERT Solutions for Accountancy for CBSE class 12 consists of questions at the end of each chapter. And students can answer them so that they get enough practice for the exams.
2. They are Accurate and Get Straight to the Point
Chapter-wise solutions by NCERT, especially those for Accountancy, get straight to the point without beating around the bush. So, they come as handy tools for those students who want to focus on the subject.
3. They are Free of Cost
Chapter-wise solutions for Accountancy by NCERT are free to avail. So, students of CBSE class 12 can download them from various websites to start preparing for the exams.
4. Help with Homework
NCERT Solutions for Accountancy also help students with their homework. When students do their homework and get stuck at some point along the way, they can always refer to the chapter-wise solutions by NCERT to get their doubts cleared.
We have covered the detailed guide on CBSE NCERT Solutions for Class 12 Accountancy Part 1 Chapter 1. Feel free to ask any questions in the comment section below.
FAQs on NCERT Solutions for Class 12 Accountancy Part 1 Chapter 1
What is the Nature of Receipts and Payment Accounts?
Bank and cash transactions are summarised in receipts and payment accounts.
What do you mean by Income and Expenditure Account?
The income and expenditure account is thought to be the same as the profit and loss account. Both surpluses and deficits are calculated during the accounting period under this sort of account.
What are the benefits of the CBSE NCERT Solutions for Class 12 Accountancy Part 1 Chapter 1?
Go through the above blog for the benefits of solving NCERT Solutions for Class 12 Accountancy Part 1 Chapter 1.
Is it possible to get the NCERT Solutions for Class 12 Accountancy Part 1 Chapter 1 for free?
Yes, students can get the NCERT Solutions for Class 12 Accountancy Part 1 Chapter 1 in PDF format for free from the above article.
What does it mean to be a “not-for-profit” organization?
Not-for-profit organizations are those that are formed solely for the purpose of offering various services to society without earning a profit.