Accounts of Non- Trading Organization — Flashcards

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A non-trading organization is formed for the welfare of society or for the promotion of art, culture, education, sports, and similar service activities. Its main aim is not earning profit, but providi…

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They maintain accounts to avoid misappropriation of funds, ensure proper use of resources, prepare final accounts every year, ascertain whether income is more than expenditure or vice versa, know the …

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The six books generally maintained are Cash Book, Journal Proper, Minute Book, Ledger, Member's Register, and Register of Assets. The Cash Book records cash and bank transactions, while the Journal Pr…

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Mostly these organizations adopt cash basis accounting because most of their transactions are cash transactions. The Cash Book becomes the main record for receipts and payments, while non-cash items a…

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A Receipts and Payments Account is merely a summary of cash and bank transactions during an accounting period of a non-trading organization. It records all receipts on the debit side and all payments …

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It is a real account. It starts with opening cash and bank balances and ends with closing cash and bank balances. It records all cash receipts and cash payments regardless of period or nature. It igno…

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No. It does not show whether current income exceeds current expenditure or vice versa. It only gives the cash and bank position for the period.

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A Receipts and Payments Account is prepared at the end of the accounting year as part of final accounts, while a Cash Book is prepared daily as part of books of account. A Receipts and Payments Accoun…