Question

What is used to prepare the opening Balance Sheet?

• A. Income & Expenditure A/c
• B. Receipts & Payments A/c
• C. Cash A/c
• D. Capital A/c

Hint:

Opening Balance Sheet of NPO is prepared from Receipts & Payments A/c balances.

Answer 1

The Correct Option is B

Step 1: Opening Balance Sheet.
When a not-for-profit organisation is formed, its opening Balance Sheet is prepared to show its initial financial position.
Step 2: Source of data.
The Receipts & Payments A/c provides information of cash and bank balances, assets, and liabilities, which are used to prepare the opening Balance Sheet.
Step 3: Conclude.
Thus, the opening Balance Sheet is prepared from Receipts & Payments A/c.
Final Answer: \[ \boxed{\text{Receipts & Payments A/c}} \]