Opinion on the question....1.2

Opinion on the question....1.2 Value Trust was started by a group of five persons for providing Night Shelters for homeless people, each donating 1,00.000. Response to the project was extremely good and many To people wanted to avail the facility and there was need for funds. A company approached the trustees making a proposal that they will give a donation of under their Corporate Social Responsibility (CSR) and would also give interest free loan of The trustees have raised queries whether the Not-for-Profit Organisation can take loan for its activities and have requested your opinion and also accounting of loan. rence between Not-for-Profit Organisation and Profit Earning Organisation Not-for-ProfitOrgam on pose for tt is set-up with a purpose to further cultural, h set-up public service. ents They are raised by way of Membership Fee, Subscription, Donations and Surplus from Operations. In the Balance Sheet, it is shown as General Fund or Capital Fund or Corpus Fund. financial Statements prepared are Receipts and Payments Account, Income and Expenditure Account and Balance Sheet. pfthe and Expenditure Account IS either Surplus or Defi Profit Earning Organisation (Business Firm) Purpose is to earn profit. They are raised as capital by the proprietor, partners (in the case of Partnership Firms) anc Share Capital or borrowed funds (in the case c Companies). Profits not distributed to partne and shareholders are shown as Reserves. Financial Statements prepared are Tradi Account, Profit and Loss Account and Balal Sheet. Balance of the Profit and Loss Account is ei