ACC differences between profit and not for profit org

ACC differences between profit and not for profit org -...

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From the accounting point of view, there are several differences between profit and not for profit organizations. The first is regarding the ownership of business. For a profit oriented business, regular accounting as for a sole trader, partnership, or limited company may be done but for a not for profit organiztion, either trust accounting or fund accounting is to be done because not for profit organizations are either trusts or specific funds established for the purpose. The second difference is the objective of pursuing
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Unformatted text preview: profits. Profit oriented organizations have regular sales, purchases and expense accounts where as not for profit have income/expenditure accounts or grants/expenditure accounts. The third difference is in the statements prepared. For profit organizations prepare income statement and balance sheets while not for profit organizations prepare income and expenditure account plus a statement of affairs....
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This note was uploaded on 05/10/2011 for the course STATS 202 taught by Professor Emil during the Spring '11 term at Aberystwyth University.

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