Procedure for preparation of Balance sheet:
The balance sheet of a not for profit organisation is prepared as in any other organisation contains particulars of assets and liabilities on the date on which it is prepared.
The excess of assets over liabilities is called capital fund or general fund and it increase with surplus of income over expenditure and also certain other items which are capitalised. If the opening capital fund is not given, then the opening balance sheet is prepared in order to know the opening fund.
