1. Not for profit organisation usually keep ‘a cash book’ in which all receipts and payments are recorded.
2. They maintain ‘a ledger’ containing the accounts of all incomes, expenses, assets, and liabilities which facilities the preparation of financial statements at the end of the accounting year.
3. The final accounts of a non-profit organisation consist of the following:
- Receipts and payment Account
- Income and Expenditure Account
- Balance sheet