Question

Analyse the accounting system is a non profit organization

Answer 1

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.

Answer 2

Answer:

NON PROFIT ORGANISATIONS -  These organizations exist in the economy not to earn profit but to fulfill the cause and point of society.  The projectile concept of these organizations is to maintain the social cause and creating better livings.

ACCOUNTING -  It is somethings where a firm assists it's financial status by calculating its profits and losses.

Whereas, here few patterns are different from the corporative organizations.

FOR EXAMPLE :

1 - They are exempted to pay off the taxes.

2- Insisted on surplus and deficits, they consider the records about the funds earned and spent on.