Download Book Keeping Notes Form Three – All Topics based in current syllabus.
ACCOUNTING FOR NOT-FOR-PROFIT ORGANISATIONS:
Introduction:
The competencies developed in this chapter, will enable you to prepare financial statement for not-for-profit organisations.
Nature of not-for-profit organisations:
You may be wondering if there are any organisations whose aim is not to make profit. The truth is that, there are some organisations that are established not for the purpose making profits.
Profit Making Organizations:
Are organization deal with the buying and selling of goods or services with the motive of generating profit. Therefore, these organizations are profit oriented; whereas
Non-Profit Making Organizations:
Are organization are established to provide social services to the society.
Non-Profit Making Organizations:
Are organizations deals with provision of services, products or certain interests to the members and community not with the purpose of making profit. Therefore, these organizations are non-profit oriented.
Sources of Funds for Non-Profit Making Organizations
(a) Subscriptions:
It is a regular payment received by not- for-profit organisations from members each year. It is the main source of income and is of a recurring nature.
(b) Donation:
This is an amount received by a not-for- profit organisation from any entity by way of a gift. The entity making the donation may be an individual, a firm or an enterprise and the gift may be in cash or kind.
(c) Legacy:
It is an amount received by a not-for- profit organisation in accordance with the will of a deceased person.
(d) Entrance fees:
It is an amount collected from new members of the organisation at the time of admission.
(e) Life membership fees:
It is a fee charged by a not-for-profit organisation for granting membership to a person, which is valid for life.
(f) Exhibitions fees:
funds collected by an organization from people who participate in exhibitions.
(g) Collections from gate:
Are funds payable by members and non-members to the club at the main gate during special events.
(h) Grants and aids:
Are funds or resources contributed by the people or some institutions due to some potential services offered by the organization to the community.
(i) Competition prizes
(j) Bar/restaurant collections
(k) Tickets sales etc.
BOOK KEEPING NOTES FORM THREE – ALL TOPICS
Chapter One: Adjustments for accruals and prepayments.
Chapter Two: Adjustments for depreciation of non-current assets
Chapter Three: Adjustments for bad debts and doubtful debts
Chapter Four: Control accounts
Chapter Five: Accounting for incomplete records
Chapter Six: Accounting for not-for-profit organisations