What are Non Profit Organizations?
Sole trader, Partnership and Limited companies have Profit as their main objective. However, Clubs, societies and associations does not only exist to make profit. They may be formed to promote cultural and recreational interest. Thus their final accounts are different from those organizations which solely exist to earn profit.
The final accounts of a non-profit organization includes of
- Trading Accounts (only if there is a restaurant or canteen)
- Receipts and Payments Accounts
- Income and Expenditure Account
- Balance Sheet