Question

What financial statements are required of not-for-profit organizations? How are they different or comparable to those provided by organizations that operate for profit? How does the retained earnings section of for-profit organizations differ from that of the net assets section of not-for-profits?

Answer 1

ANSWER:

Not for Profit Organization is otherwise called Non – Profit Organsation.The primary reason for Not revenue driven association is to give administration to its individuals or to the general public without acquiring benefit.

It is for the most part a different lawful element not possessed by any undertaking or any person.

Models of Not revenue driven associations: Hospitals, sports Club, School and so on.

Budgetary Statement Required to arranged by not revenue driven associations are

1) Receipts and Payment Account

2) Income and Expenditure Account

3) Balance Sheet

Money related Statement Required to arranged by benefit associations are

1) Trading Account

2) Profit and Loss Account

3) Balance Sheet

Differences between Pay and Expenditure Account and Profit and Loss Account ,

Pay and Expenditure Account	Profit and Loss Account
1)Main question distinguish overabundance of salary over consumption.	1.) Main protest recognize net benefit or net misfortune.
2.) Income and Expenditure account is readied	2.) It is Preapared by business venture. By not revenue driven association.
3.) The adjust is known as surplus or shortage	3.) The Balance is known as net benefit or net misfortune.

The Non-Profit association gather its net income as Net Assets, while it is appeared as held income in the money related articulations of revenue driven Organization.