Wednesday, May 16, 2012

Receipts and Payments account

Not-For-Profit Organisation
A Not-For-profit organisation is a voluntary association of persons, set up and operated not for the purposes of earning profit but, for the welfare of the society or promotion of art, culture, sports and general public utility. Examples of these are schools, hospitals and sports association. These organisations provide services to their members and to the public in general. Their main source of income is membership fees, subscription, donation, grant-in-aid, etc.
Characteristics of Not-for-profit organisations: Following are the main characteristics or the salient features of Not for Profit organisations:

Income and Expenditure Account

Income and Expenditure Account
Income and Expenditure Account is a Nominal Account which is prepared at the end of the accounting period by a Not-For-Profit Organisation to ascertain the surplus, i.e., excess of income over expenditure, or the deficit, i.e.  Excess of expenditure over income.
Features of Income and Expenditure Account.