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:

C. A, D, B

The following procedure is adopted to prepare the Balance Sheet:
1. Take the Capital/General Fund as per the opening balance sheet and add surplus from the Income and Expenditure Account. Further, add entrance fees, legacies, life membership fees, etc. received during the year.
2. Take all the fixed assets (not sold/discarded/or destroyed during the year) with additions (from the Receipts and Payments account) after charging depreciation (as per Income and Expenditure account) and show them on the assets side.
3. Compare items on the receipts side of the Receipts and Payments Account with income side of the Income and Expenditure Account. This is to ascertain the amounts of: (a) subscriptions due but not yet received: (b) incomes received in advance; (c) sale of fixed assets made during the year; (d) items to be capitalised (i.e. taken directly to the Balance Sheet) e.g. legacies, interest on specific fund investment and so on.
4. Similarly compare, items on the payments side of the Receipt and Payment Account with expenditure side of the Income and Expenditure Account. This is to ascertain the amounts if: (a) outstanding expenses; (b) prepaid expenses; (c) purchase of a fixed asset during the year; (d) depreciation on fixed assets; (e) stock of consumable items like stationery in hand; (f) Closing balance of cash in hand and cash at bank as, and so on.