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Corpus Fund - Tomb fund

A/c entries 139 views 1 replies

Antony

Manager

63 Points Joined May 2012

In the balance sheet of our church, there is an outstanding liability of Rs. 5,00,000 recorded under the Corpus Fund. This sum has been collected from parishioners for the purpose of reserving tombs in our cemetery. Kindly provide recommendations for addressing the liability associated with the Corpus Fund.

Thanking you

Antony Kaitharath

Replies (1)

Rama chary Rachakonda

Master in Accounts & high court Advocate

8979 Points Joined December 2011

The Corpus Fund liability in your church's balance sheet represents a significant amount collected from parishioners for reserving tombs in your cemetery. To address this liability, consider the following recommendations: 1. *Separate accounting*: Maintain a separate ledger or account for the Corpus Fund to track receipts, payments, and outstanding balances. 2. ** Transparency and communication**: Inform parishioners about the fund's purpose, usage, and current status. Ensure they understand that the funds are specifically earmarked for cemetery tomb reservations. 3. *Designate a trustee or committee*: Appoint a trustee or committee to oversee the Corpus Fund, ensuring proper management and utilization of the funds. 4. *Investment options*: Explore low-risk investment opportunities to grow the fund, ensuring liquidity for future obligations. 5. *Tomb reservation agreements*: Establish formal agreements with parishioners, outlining terms and conditions for tomb reservations, including refund or cancellation policies. 6. *Regular reviews and audits*: Conduct periodic reviews and audits to ensure the fund's integrity and compliance with church policies and regulatory requirements. 7. *Consider a sinking fund*: Create a sinking fund to gradually retire the liability, ensuring a smooth transition and minimizing financial burdens. 8. *Seek professional advice*: Consult . By implementing these recommendations, you can effectively manage the Corpus Fund liability, maintain transparency, and honor your church's commitments to parishioners.

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