Which of the following accounts are prepared by non profit organisation?

a. Income and Expenditure account
b. Receipt and Payment account
c. Trading and Profit and loss account
d. Profit and Loss Appropriation account

Choose the correct answer from the options given below.

ab

The correct answer is option  4- ab.

The Not-for-Profit Organisations are required to prepare financial statements at the end of the each accounting period. These organisations are non-profit making entities and they are not required to make Trading and Profit & Loss Account but it is necessary to know that the income during the year was sufficient to meet the expenses or not. They have to provide the necessary financial information to members, donors, and contributors and also to the Registrar of Societies. The Receipt and Payment Account is the summary of cash and bank transactions which helps in the preparation of Income and Expenditure Account and the Balance Sheet. It is a legal requirement as the Receipts and Payments Account has also to be submitted to the Registrar of Societies along with the Income and Expenditure Account, and the Balance Sheet.

Other options-
c. Trading and Profit and loss account
d. Profit and Loss Appropriation account
These accounts are made by partnership firm.