ACCOUNTS OF NOT FOR PROFIT ORGANISATION
Some organisations are established for the purpose of rendering services to the public without any profit motive. They may be created for the promotion of art, culture, education, sports, etc. These organisations are called not–for–profit organisation. Charitable institutions, educational institutions, cultural societies, sports and recreation clubs, hospitals, libraries and literary associations are some of the examples of not–for–profit organisations. They are also called as non–profit organisations or non–trading concerns. They raise funds through donations, grants from government and subscriptions from their members and so on. These concerns must also maintain proper books of accounts. They must account for all cash receipts and payments. At the end of each accounting year, they must also prepare final accounts to ascertain the surplus or deficit and financial position.
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