c









cc
 



 !"#$%
&'("
c" Not-for-profit organizations are those organizations, which are established not
to earn profit but to render their services to their members and society. These are
voluntary association of persons, formed for the purpose of providing services to its
members or to promote art, culture, education and other social and charitable
purposes. For example, schools, colleges, charitable hospitals, public libraries, sport
clubs, etc.

) %**"*"


 !"
c" (i) Not-for-profit organizations are established for welfare and service of the
society and their members.
(ii) Their main sources of income are:- subscription from members, donations,
grants, etc.

+$%"*"*

 !"
c" The main sources of income of not-for-profit organizations are:
(i)? ÷ubscriptions.
(ii)?Membership fees/Admission fees/Entrance fees.

Ñ" *'""c**#

c" A "Receipts and Payments Account" is a summary of cash and bank
transactions relating to a certain period. It is the form of account most commonly
adopted by societies, clubs, associations, etc. " "" "" of accounting is
used to prepare this account.

,"*-&'c**#
c" Income and Expenditure Account is similar to Profit and Loss A/c. All
expenses and losses of revenue nature are recorded on the debit side, while all
incomes and gains of a revenue nature are recorded on its credit side. The balance of
this account shows either surplus or deficit. c**(  .*( "" of
accounting is used to prepare this account.

/0%%(**""*'"*$$*1"

  !#
c" ÷ubscription received in advance is deducted from the total subscriptions
received during the year before transferring it to the credit side of Income and
Expenditure Account. ÷ubscription received in advance will also appear on the
liabilities side of the Balance ÷heet.

2 *'""c**"*$*

-&'c**3** **'"((%
 '$""**("" **'"
((%
c" Accrual concept of accounting is followed when the Receipts and Payments
Account is converted into an Income and Expenditure Account.
4**3%*"%"*(""""*"
"51

' !
c" Receipts and Payments Account shows the classified summary of transactions
of a Cash Book in a not-for-profit organization.