Question

Concern was established for rendering service to its members or society and do not earn profit

Answer 1

Dear Student,

Explanation:

Certain organisations are formed not to earn profits but to render services to their members or to the society at large.

• For example, aided schools, clubs, hospitals, societies etc. The primary motive of such organisations is to provide a service.

In such organisations, Income and Expenditure Account and Balance Sheet are prepared at year end to know the surplus/deficit and the financial position