Not for profit organisation is an entity intended to render services to the members of the public without any intention of profit”
eg: sports and arts club, Hospitals, Libraries charitable institutions, etc.
Features:
1.Their main objective is to render services to members and to the public.
2. They are not expected to earn profit.
3. They do not normally engage in trading activities.
4. Credit transactions are not usually made.
5. Such concerns keep only cash book to record daily transactions.
6. They prepare a summary of cash book at the end called Receipts and payments A/c.
7. No trial balance is prepared.
8. Do not prepare trading, profit and loss A/c, but prepare Income and Expenditure A/c.
