AOP accounting

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

22 July 2010 Is there any accounting Standard or guidance note on what all payment can be treated as pure expenses of the AOP ,& what all will be part of the utilization of funds collected for any particular form.Like in case of a RWA they have collected X amount as maintenance fund but general expenses like Audit fee ,conveyance charges will be purely expenses or part of utilization of fund(this question i want to ask is respect to income tax also as what all can be taken as expneses & deduction can be claimed from income from misc.sources)

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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05 August 2010 There is no separate accounting standards for AOP.

AOP which collects funds from the members to serve them; all the expenditure would be debited to Income & Expenditure Account.

Querist : Anonymous

Querist : Anonymous (Querist)

05 August 2010 Thanks for the reply,but as such what all is expenditure for them as for them in most of the payment is utilisation of funds ,and seen different balance sheet of different AOP(non profit organisation specifically)some shows all as expenditure & all fund received as income ,& some show fund received & fund payment seprately & only pure income like bank interest & pure expenses such as Audit fee in income & expenditure ?is both the method correct?

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