Subscription Income & Accounting In Non-Profit Organization

Posted by Ana Orwel on Thursday, March 26, 2009

Subscription income & accounting is different in non-profit organization. Still it is not only the companies which need to maintain proper books of accounts, but the non profit seeking organisations also have to maintain proper books.

The main source of income for these organisations is the subscription which they receive from the members and other bodies who fund them. In this case the accounting format remains same except for some basic features. The other books remain the same but for non-profit organization Income and Expenditure account is prepared, such organizations also have Balance Sheet. There is no Profit and Loss statement for such organization, as the purpose of activities is not seeking profit, but satisfie the needs of the members.

Find more information on accounting basic here.