Practical problems for NPO accounts require organizing information into R&P Account, I&E Account, and Balance Sheet. Step 1: Identify all cash transactions for R&P Account (receipts and payments). Step 2: Identify adjusting items (accruals, prepayments, depreciation, provisions). Step 3: Prepare R&P Account showing: Opening Balance, Receipts, Payments, Closing Balance. Step 4: Prepare I&E Account showing: Opening Fund, Incomes (cash plus accruals), Expenditures, Surplus/Deficit, Closing Fund. Step 5: Prepare Balance Sheet showing: Fixed Assets, Current Assets, Current Liabilities, Long-term Liabilities, Funds (with opening, changes, closing). Common Adjustments: Subscriptions arrears and advance, Donations pending/pledged, Entrance fees outstanding, Depreciation on assets, Provision for Doubtful Debts, Accruals for unpaid expenses, Prepayments for advance payments. Reconciliation: Surplus from I&E Account must match change in Fund from opening to closing, Closing Cash Balance from R&P Account must match Cash on Balance Sheet. Present Statements properly: R&P Account in Account Format, I&E Account in Account Format, Balance Sheet in Vertical Format, Include detailed notes where needed. Workings: Show detailed calculations for subscriptions, entrance fees, donations, accruals, depreciation. Exam tip: Always prepare detailed workings; create clear R&P and I&E Accounts; reconcile I&E surplus with fund change; verify all balances match.