Question

why does non trading organisation prepare the income and expenditure account and not the profit and loss account??​

Answer 1

Answer:

BASICALLY SMALL SCALE INDUSTRY USE SINGLE ENTRY SYSTEM i.e. firm

Explanation:

Some of the organizations or institutions are constituted to provide valuable services to the society with the objective not to earn profit. These organizations normally offer the services such as education, medical, social clubs, charitable trusts, trade unions, etc.

However, we can summarize these organizations in the following three types of categories −

Clubs, associations, or society’s works for the welfare of their members.

Charitable institutions like hospitals, students’ hostels, and other educational institutions providing education to poor children as well as illiterate young and old groups.

Professional firms of lawyers, chartered accountants, architects, doctors, solicitors, etc.

Answer 2

Answer:

Explanation:

Nonprofit organizations are also known as not-for-profits, NFP's or simply as nonprofits. Nonprofit organizations are likely to be involved in areas such as religious, education, health, social services, arts, etc. Nonprofit organizations may apply to be exempt from federal income taxes.