Q.Not for profit concerns, do not prepare balance sheet.

False. A not-for-profit concern prepares a Receipts and Payments Account, an Income and Expenditure Account and a Balance Sheet.

At the end of an accounting year a not-for-profit concern (clubs, hospitals, schools, trusts, etc.) prepares the following final accounts:

Depreciation of ₹5,000 represents 10% of the opening value; therefore the opening value of Library Books is ₹5,000 ÷ 10% = ₹50,000, and after depreciation it stands at ₹45,000.

Method: If 10% of the value = ₹5,000, then the full (100%) value = 5,000 × 100/10.

The statement is incorrect — False. Not-for-profit concerns do prepare a Balance Sheet.

Reason: At the year-end a not-for-profit concern prepares (1) a Receipts and Payments Account, (2) an Income and Expenditure Account to find the surplus/deficit, and (3) a Balance Sheet to show its financial position — its assets (cash, investments, furniture, building, etc.) and its liabilities/funds (Capital Fund, specific funds …