Non-trading Concerns

Introduction

In every society, some organizations or associations are found which are operated for the benefit of society. These organizations are established for some social, educational, religious or charitable purposes. Their aim is not to earn profit rather serve their members or a community or the entire population of a certain city or locality and sometimes the whole state or nation. These organizations are found in the form of clubs, societies and charitable bodies. Many government institutions also fall into this category, such as hospitals, schools, colleges and libraries etc.

Thus from the above discussion, we conceive that Non- Trading Concerns or Non-Profit Organizations are those organizations which are not engaged in profit-making activities. They are operated for the benefit of their members or the society as a whole. Such as Clubs, Libraries, Hospitals and Dispensaries etc

Accounting treatment of some special items of Non-trading concerns

There are some special items which are used in the accounts of non-trading concerns or non-profit organizations. which are as under. 1. SUBSCRIPTIONS It is an amount paid by the members of non-trading concerns at regular intervals to keep their membership alive. It is the main and regular source of income of non-profit organizations. The …

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What are non-trading concerns

Concerns or organization may be classified as: Profit making or Trading Concerns Non-trading concerns or Non-profit making organizations Profit making organizations: Profit making organizations deal in buying and selling merchandise with the expectation of earning profit. Examples of trading or profit making organizations are commercial banks, insurance companies, textile mills etc. Non-trading concerns or non-profit …

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Differences between trading and non-trading concerns

The main points of difference between trading and non-trading concerns may be summarized as follows: Objective: Trading Concerns: The main objective of these concerns is to earn profit. Non-trading Concerns: The main objective of these concerns is to provide goods and services that fulfill a social need. Source of Income: Trading Concerns: The main sources of income …

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Difference between receipt and payment account and income and expenditure account

The main points of difference between receipt and payment account and Income and expenditure account may be described as under: Nature: Receipt and payment account: It is a summary of cash transactions. Income and expenditure account: It is another name of income and expenses summary as adopted in non-trading concern. Commencement Receipt and payment account: It …

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Preparation of income and expenditure account from receipt and payment account

If the points of difference between receipt and payment account and income and expenditure account have been understood, it should be a simple matter to convert a receipt and payment account into an income and expenditure account. As a general guide, the following steps should be carefully followed to convert the receipt and payment account to …

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Non-trading concern

Take a quick Multiple Choice Questions (MCQs) test about Non-trading concerns. These MCQs can help you to prepare for your exams, interviews and different tests. Just click the “start quiz” button and start Non-trading Concerns MCQs quiz. If you find difficulty in answering these questions, read ‘Non-trading Concerns‘ chapter thoroughly from the explanation section of the …

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