What is prepared by the NPO's to know that the income during the year was sufficient to meet the expenses or not?

Financial statements

The Not-for-Profit Organisations are required to prepare financial statements at the end of the each accounting period. These organisations are non-profit making entities and they are not required to make Trading and Profit & Loss Account but it is necessary to know that the income during the year was sufficient to meet the expenses or not. They have to provide the necessary financial information to members, donors, and contributors and also to the Registrar of Societies. .