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CONTENTS:           

  1. Introduction
  2. Receipt and payment accounts
  3. Income and expenditure
  4. Differences between receipt and payment and income and expenditure
  5. Accumulated fund
  6. Subscription

 

INTRODUCTION

There are several organizations that are established and run for the purposes of meeting the social, cultural, health and at times educational needs of the citizens. Such organizations are not set up for the purpose of making profits from their activities and are thus called non-profit making organizations.

These organizations even though are not for profit making, but to prepare accounts so as to be able to tell their stakeholders and other donors how they have utilized the contributed funds.

Usually, the account of non-profit organizations consists of the following:

  1. Receipt and Payment
  2. Income and Expenditure
  3. Balance sheet

Receipt and payment

This is a summarized cash book of i.e. (it incorporates the cash and bank transactions of a non-profit making organization).

In other words, it is a statement of cash actually received and paid during a given period.

Lesson tags: Financial Accounting Lesson Notes, Financial Accounting Objective Questions, SS2 Financial Accounting, SS2 Financial Accounting Evaluation Questions, SS2 Financial Accounting Evaluation Questions First Term, SS2 Financial Accounting First Term, SS2 Financial Accounting Objective Questions, SS2 Financial Accounting Objective Questions First Term
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