1. Analyse the accounting system is a non-profit organization
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shivanshusingh97
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we can observe so many examples of a small size non-profit organizations around us,the very commonly understood example will be of a street library where cash bookwould have been maintained as the only book of account and finally a summary ofthat cash book is prepared at the end of the year just to have an overview of the totalreceipts and payment made during the year.Because of the very simple and few transactions, its members do not need to know itsfinancial position at the end of each accounting period therefore Income &Expenditure Account and Balance Sheet is not prepared.Large size non-profit organizationOn the contrary, member of the large size organization will be interested in allfinancial results of the entity and a proper book-keeping system is developed overthere. The outcome of which is production of a Trial Balance which is used to prepareIncome & Expenditure Account and Balance sheet.