The sequence to develop the Balance Sheet in NPO includes the following steps:
A. Taking all fixed assets with additions and depreciation and show them on the asset side
B. Compare the items of payment of Receipts and Payment A/c with expense of Income and Expenditure A./c to find outstanding and prepaid expenses
C. Taking the capital/General Fund from opening balance sheet
D. Compare items of receipt of Receipts and Payment A/c with Income of Income and Expenditure A/c to find outstanding and Advances etc.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → C, A, D, B
The Balance Sheet of a Not-for-Profit Organisation is built in the order of the book’s procedure.
C. Taking the capital/General Fund from opening balance sheet – step 1, with the surplus and capitalised receipts added.
A. Taking all fixed assets with additions and depreciation and show them on the asset side – step 2.
D. Compare items of receipt of Receipts and Payment A/c with Income of Income and Expenditure A/c to find outstanding and Advances etc. – step 3, the receipts side.
B. Compare the items of payment of Receipts and Payment A/c with expense of Income and Expenditure A./c to find outstanding and prepaid expenses – step 4, the payments side.
Note: This question is from the pre-rationalised NCERT book. The topic is not there in the latest NCERT book (2026-27), and it is also out of the CUET 2026 syllabus.
NCERT (Pre-rationalised edition):
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