Video on

Meaning Accounts For non Profit

Last Updated On: 27-Oct-2021Posted On: 27-Oct-2021

Please Login to Continue Watching Video

INTRODUCTION TO NON-TRADING CONCERN The non-trading concerns are the organizations which are established with a view to provide services to the society and not to make profits. The examples of such organization are sports, dub, school, hospitals, temples, etc. Though, they are not established with a view to earn profit but still it needs to maintain a set of accounting books in order to avoid misappropriation of funds. The main purpose of non-trading concern is to provide necessary services to its members and society through welfare activities. So, their main objective is not to arn profit. Non-profit organizations can be defined as, “An entity whose prime motive is to provide services to the society and not to make a profit.” This organization prepares financial statement so that all the legal requirement can be fulfilled. Features of Non-profit Organization  It provides service to a certain group or the public at large.  They are governed by the public or its members.  The main source of their incomes is subscriptions, grants, donations, etc.  Fund based items are credited to the capital fund or the general fund.  Profit and loss derived from income and expenditure a/c is adjusted to capital fund in the balance sheet.

Comments

Need to login to Comment

No Comments yet