Mr I. Seetane

ACCF111 CHAPTER 21 NON-PROFIT ORGANISATIONS Outcomes of this module Prep are the following: * gain and payments statement * tilt of comprehensive income * Statement of financial purview * Statement of changes in equity * Reconstruct the membership fesse account The purpose of a non- realise organisation is to provide wait on to the community. Although they are non-profit, they arse still trade and earn profit which are called surpluses and deficits. Any surplus earned must be utilise for the benefit of the members. Non-profit organisations can range in cake and includes sports clubs, social clubs, churches, educational institutions, government bodies and professional societies. The finincial statements will propel depending on the size of the organisation. Most will use what is bang as funds accounting procedures. As there are no owners and profit is not the motive, there is no lie account. This is instead replaced by th e accumulated fund account. This fund is apply for general running expenses and excludes special funds, which we will see shortly. ASSETS = LIABILITIES + monetary resource 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) ancestry and not deal out it as profit. Dr Bank Cr Entrance Fees (income) or Dr Entrance Fees Cr Accumulated inventory Membership fees most clubs charge membership fees (subscriptions) to their members. The fee is elaborate based on the funding they require fo r the year. The same priniciple applies as i! n trading entities and any fees in arrears must be accounted for and shown as a current asset receivable. Any fees remunerative in advance must be reflected as a current liability being fees received in advance. It is life-threatening that these two accounts be transferred to the membership fee account at the beginning of...If you want to get a full essay, student lodging it on our website: OrderEssay.net

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