Mr I. Seetane

ACCF111 CHAPTER 21 NON-PROFIT ORGANISATIONS Outcomes of this module Prep atomic number 18 the following: * revenue and payments statement * tilt of comprehensive income * Statement of financial short letter * Statement of changes in equity * Reconstruct the membership fesse account The purpose of a non- loot organisation is to provide right to the community. Although they are non-profit, they arse still trade and earn scratch which are called surpluses and deficits. Any surplus earned must be utilise for the benefit of the members. Non-profit organisations can range in coating and includes sports clubs, social clubs, churches, educational institutions, government bodies and professional societies. The finincial statements will brook depending on the size of the organisation. Most will use what is have sex as funds accounting procedures. As there are no owners and profit is not the motive, there is no detonating device acco unt. This is instead replaced by the accumulated fund account. This fund is apply for general running expenses and excludes special funds, which we will see shortly. ASSETS = LIABILITIES + cash Sources of funding entering fees this is a once-off payment that the members make to merge the organisation.

It can be considered to be profit or the entity can decide to take it to the hoard (General) investment company and not deal out it as profit. Dr Bank Cr Entrance Fees (income) or Dr Entrance Fees Cr Accumulated broth Membership fees most clubs charge membership fees (subscriptions) to their members. The fee is sure based on the funding they require for the year. The same ! priniciple applies as in trading entities and any fees in arrears must be accounted for and shown as a current asset receivable. Any fees gainful in advance must be reflected as a current liability being fees received in advance. It is operose that these two accounts be transferred to the membership fee account at the beginning of...If you want to get a full essay, social club it on our website: OrderEssay.net

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