Accounting for Not-for-Profit Organisation
NPO or Not for Profit Organisation, also renowned as a non-business organisation or nonprofit establishment is staunched to a certain social principle or prescribing for a shared point of view. According to economic terms, it is an establishment that utilises its surfeit of the revenues to additionally attain its ultimate aim, rather than allocating its income to the entity’s leaders, shareholders or members.
Let us now understand each concept of Accounting for Not-for-Profit Organisation in detail.
- Meaning and Characteristics of Not-for-Profit Organisation
- Accounting Records of Not-for-Profit Organisations
- Receipt and Payment Account
- Income and Expenditure Account
- Balance Sheet
- Some Peculiar Items
- Income and Expenditure Account based on Trial Balance
- Incidental Trading Activity
This is also a legitimate requirement and assists them to keep an eye on their income and expenditure, the trait of which is distinct from those of the business establishments.
The above mentioned is the concept that is explained in detail about Accounting for Not-for-Profit Organisation for the Class 12 students. To know more, stay tuned to BYJU’S.