Specialized Accounting NEP Unit 1
Unit-1 Accounting for Non-Trading Organizations 1.1 INTRODUCTION Non-profit making organisations such aspublic hospitals, public educational institutions, clubs, etc., generally prepare Receipts and Payments Account and income and Expenditure Account to show periodic performance & BalanceSheettoshowfinancialpositionattheendoftheaccounting period. In this Unit, we shall discuss the technique of preparing Receipts and Payments Account, Income and Expenditure Accounts and Balance Sheet of Non Profit or Non-trading organisations. Also we shall discuss and illustrate thetechniqueofpreparingIncome&ExpenditureAccountfromReceiptsand Payments Account. It may be mentioned that Income and Expenditure Account is just similar to profit and Loss Account prepared for the profit makingorganisations. In case of income and Expenditure Account, the excess of expenditure over Income is treated as surplus. In non-profit making organisations, total cash receipts and total...