Home | | Accountancy 12th Std | Features of not–for–profit organisations

Chapter: 12th Accountancy : Accounts of-Not-For Profit Organisation

Accountancy | Study Material, Lecturing Notes, Assignment, Reference, Wiki description explanation, brief detail |

Features of not–for–profit organisations

Following are the features of not–for–profit organisations:

Features of not–for–profit organisations

Following are the features of not–for–profit organisations:

1. Not–for–profit organisations are the organisations which function without any profit motive.

2. Their main aim is to provide services to a specific group or the public at large.

3. Generally, they do not undertake business or trading activities.

4. Their main sources of income include subscription from members, donations, grant-in-aid and legacies.

At the end of the accounting period, the following final accounts are prepared by not–for– profit organisations:

(i) Receipts and payments account,

(ii) Income and expenditure account and

(iii) Balance sheet

Not–for–profit organisations registered under Section 8 of the Indian Companies Act, 2013 are required to prepare their Income and Expenditure account and Balance Sheet as per Schedule III to the Indian Companies Act, 2013.

Note: In this unit, only the not–for–profit organisations not registered under the Indian Companies Act, 2013 are dealt with. Hence, Income and Expenditure account and Balance Sheet are not prepared as per Schedule III of the Indian Companies Act, 2013.

Tags : Accountancy Accountancy
Study Material, Lecturing Notes, Assignment, Reference, Wiki description explanation, brief detail


Copyright © 2018-2020 BrainKart.com; All Rights Reserved. Developed by Therithal info, Chennai.