Accounting For Non-Trading Concerns ( Part 1)

August 13th, 2006 Comments off
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Unlike a normal trading concern, non trading concerns like clubs, societies and association are incorporated without the motive of making profits.

Their main objective is to promote amongst its members recreational interest.

However, some clubs and societies which run bars or restaurant for the convenient of the member on a permanent basis with the intention of profit making.

 

The following contrast a Trading and Non-trading concern:

 

Trading Concern

Non-Trading Concern

Profit-motive

Normally non profit motive

Sources of Income mainly related to clubs, societies and associations ( discussed below)

The incomes derived mainly from the trading in the buying and selling of goods and services

Maintain Cash Book

Here, it is called Receipts and Payments Account

Maintain a Profit & Loss Account

It is called Income and Expenditure Account

The word Capital is used

Here, instead of using Capital, it is called Accumulated Fund

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Financial Accounting

 
 

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