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Reserve & Funds
03-30-2004, 01:52 AM,
#1
Reserve & Funds
Dear Auditers,
Basically my Question is Related With Audit


My Sir's Client is an NGO Organisation and i m doing audit there accounts they are have mosque and they bear all expense of mosque
they also have an account of reserve and fund and they are showing me that all exp are taking 4m reserve i m not satisfied bcoz recipt and payment account is showing as mosque exp. in there cash book and they are showing that as nagative from reserve can any body tell me is they are wrong are my obligation is wrong

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03-31-2004, 06:46 PM,
#2
 
Following questions arise from above question

1. Have the reserve and fund you mentioned above is created specifically for construction of the mosque?
2. Secondly what is the nature of the trust itself, is that trust created specifically for runing and mainatainance of mosque?
3. What is the nature of expenses you mentioned are they of capital in nature or of revenue in nature

Regards

Irfan
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08-26-2009, 08:15 PM,
#3
 
<u></u><b><font color="red">What Does Reserve Fund Mean?</font id="red"></b>
An account set aside by an individual or business to meet any unexpected costs that may arise in the future as well as the future costs of upkeep. In most cases, the fund is simply a savings account or another highly liquid asset, as it is impossible to predict when an unexpected cost may arise. However, if the fund is set up to meet the costs of scheduled upgrades, less liquid assets may be used.
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