The Balance Sheet of a non-trading organisation is prepared based on relevant information. In this context, explain any five of its features.

The Balance Sheet of a non-trading organisation is prepared on the basis of its Receipts and Payments Account, Income and Expenditure Account and other relevant information. Its main features are as follows:

1. Prepared on a particular date — A Balance Sheet is always prepared on a specific date (usually the last day of the accounting year), not for a period.

2. Prepared after Income and Expenditure Account — The Balance Sheet is prepared after the Income and Expenditure Account because the surplus or deficit calculated in I&E must be added to or deducted from the Capital Fund shown in the Balance Sheet.

3. It is a statement, not an account — A Balance Sheet is a statement of assets and liabilities. It is not part of the double entry posting system.

4. Shows financial position on a specified date — The Balance Sheet depicts the overall financial position of the organisation by listing all its assets, liabilities and Capital Fund.

5. Depicts the Capital Fund — In a non-trading organisation's Balance Sheet, the Capital Fund is shown. It includes opening Capital Fund + surplus from I&E + life membership fees + entrance fees + legacies + donations of capital nature.

6. Statutory requirement — Non-trading organisations are legally required to prepare a Balance Sheet under the Cooperative Societies Act, Societies Registration Act and other applicable laws.