Question

What is the need for preparing accounts of non profit organizations?

Answer 1

Every business needs to prepare account for many purpose though it is profit earning business or service business. Non profit organisation also require to prepare accounts for knowing receipt and payment during year or to know incomes and expenditure during yaer or to know financial position at the end of the year... To know all these things non profit organisation prepare 3 things - - 2 account and, 1 statement....

2 account - - -

Receipt and payment account
Income and expenditure account


1 statement - - -

Balance sheet

Answer 2

Answer:

A nonprofit organization, also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in contrast with an entity that operates as a business aiming to generate a profit for its owners.