Non-Trading Organisations

Non-trading organisations focus on serving the public interest rather than generating profit, playing a vital role in various societal sectors.

Introduction To Non-Trading Organisations

Non-trading organisations focus on serving public interests and community needs rather than generating profits.

What Is A Non-Trading Organisation?

A non-trading organisation is a not-for-profit entity focused on serving the public interest rather than generating profits.

Importance Of Non-Trading Organisations

Non-trading organisations serve vital roles in society by providing essential services focused on public interest rather than profit.

Features Of Non-Trading Organisations

This section outlines the key features that differentiate non-trading organisations from profit-oriented entities.

Not-For-Profit

Not-for-profit organisations focus on serving social needs rather than generating profits, utilizing their surplus to further their objectives.

Membership-Based

Membership-based non-trading organizations operate on contributions from members to fulfill social, educational, or community purposes rather than profit generation.

Use Of Income

The income earned by non-trading organisations is used to support their operations rather than being distributed as profits.

Example Organisations

This section highlights various examples of non-trading organisations, including their unique characteristics and operations.

Accounting For Non-Trading Organisations

This section discusses the accounting practices specific to non-trading organisations, focusing on their sources of funds and financial statements.

Sources Of Funds

This section outlines the various sources of funds for non-trading organisations, crucial for their operations and sustainability.

Receipts And Payments Account

The Receipts and Payments Account is a crucial financial statement for non-trading organizations, summarizing cash transactions during an accounting period.

Important Points

This section highlights key aspects of the Receipts and Payments Account for non-trading organisations, emphasizing its simplicity and cash-based approach.

Income And Expenditure Account

The Income and Expenditure Account records the income and expenses of a non-trading organisation, showing its financial performance over a period.

What Is The Income And Expenditure Account?

The Income and Expenditure Account summarizes the income earned and expenses incurred by non-trading organizations over a specific period, reflecting their financial performance.

Format Of Income And Expenditure Account

The Income and Expenditure Account presents the financial performance of non-trading organisations, summarizing income earned and expenses incurred during a period.

Important Points

This section highlights the critical concepts related to income and expenditure accounts for non-trading organizations.

Balance Sheet Of Non-Trading Organisations

The Balance Sheet of non-trading organisations outlines their financial position on a specific date, including assets, liabilities, and special items unique to non-profit entities.

What Is A Balance Sheet?

A Balance Sheet is a financial statement that outlines the assets and liabilities of a non-trading organisation on a specific date.

Format Of The Balance Sheet

The Balance Sheet for non-trading organisations outlines their financial position, detailing assets and liabilities, including unique items relevant to not-for-profit entities.

Important Points

The Balance Sheet provides a clear financial snapshot of a non-trading organisation by listing its assets and liabilities.

Adjustments In Non-Trading Organisations

The section covers necessary adjustments in accounting for non-trading organisations, including subscription adjustments, depreciation, accrued income, and outstanding expenses.

Subscription Adjustments

This section discusses the adjustments required for subscription income in non-trading organisations, focusing on timing differences related to subscriptions received in advance or accrued.

Depreciation On Fixed Assets

This section discusses the importance of depreciation on fixed assets in the accounting of non-trading organisations.

Accrued Income

Accrued income refers to income that has been earned but not yet received, necessitating adjustments in financial records for accurate reporting.

Outstanding Expenses

Outstanding expenses refer to costs that have been incurred by an organization but not yet paid by the end of the accounting period. This section emphasizes the importance of accurately reporting such expenses in the Income and Expenditure Account.

Conclusion

The conclusion emphasizes the significance of non-trading organisations and the importance of accurate accounting for their sustainability.