[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-seo-663067-105":3,"detail-sidebar-cat-0-en-105":80,"doc-detail-663067-en":130},{"code":4,"msg":5,"data":6},0,"ok",{"site_id":7,"language":8,"slug":9,"title":10,"keywords":11,"description":12,"schema_data":13,"social_meta":73,"head_meta":75,"extra_data":77,"updated_unix":79},105,"en","financial-accounting-ii-non-trading-concern-non-trading-account","Financial Accounting II - Non-trading Concern - Non-trading Account","","Financial Accounting II explains non-trading concerns and the non-trading account used to safeguard members’ and the public’s funds. It covers the need to maintain proper books to track total receipts, total payments, and overall financial status, including key records maintained during the accounting period. It then details final accounts: Receipt and Payment Account, Income and Expenditure Account, and Balance Sheet, and gives rules for converting receipt and payment into income and expenditure. The document also explains special treatments for donations and legacies.",{"@graph":14,"@context":72},[15,34,55],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/document/","Document",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/document/exam/","Exam",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/document/financial-accounting-ii-non-trading-concern-non-trading-account/663067/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/financial-accounting-ii-non-trading-concern-non-trading-account/663067.png","ImageObject",300,407,{"name":42,"@type":43},"SundayMiles","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-10-29","2026-10-28",true,{"@type":52,"interactionType":53,"userInteractionCount":22},"InteractionCounter",{"@type":54},"ViewAction",{"@type":56,"mainEntity":57},"FAQPage",[58,64,68],{"name":59,"@type":60,"acceptedAnswer":61},"What is a non-trading account and why is it maintained?","Question",{"text":62,"@type":63},"A non-trading account is the account opened and maintained by non-trading organizations to record their transactions. It is maintained to protect members’ and the public’s money and to understand total receipts, total payments, and the institution’s financial status.","Answer",{"name":65,"@type":60,"acceptedAnswer":66},"What are the key characteristics of the Receipt and Payment Account?",{"text":67,"@type":63},"The Receipt and Payment Account is a real account prepared from the cash book at the end of the accounting period. Cash receipts are recorded on the debit side and cash payments on the credit side, summarizing cash transactions for the year.",{"name":69,"@type":60,"acceptedAnswer":70},"How is a Receipt and Payment Account converted into an Income and Expenditure Account?",{"text":71,"@type":63},"Ignore opening and closing balances of cash in hand and at bank, exclude capital receipts and capital payments, and consider revenue items only during preparation. Also make adjustments for outstanding and prepaid expenses, provisions (e.g., bad debts and depreciation), income received in advance, and income receivable, while excluding items related to other years.","https://schema.org",{"og:url":32,"og:type":74,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":76,"canonical":32},"index,follow",{"doc_id":78,"site_id":7},663067,1793224943,{"code":4,"msg":81,"data":82},"success",[83,87,91,94,99,104,109,114,119,122,126],{"id":22,"doc_module":4,"doc_module_name":25,"category_name":84,"show_sort_weight":85,"slug":86},"Story & Novel",90,"story-novel",{"id":26,"doc_module":4,"doc_module_name":25,"category_name":88,"show_sort_weight":89,"slug":90},"Literature",80,"literature",{"id":33,"doc_module":4,"doc_module_name":25,"category_name":29,"show_sort_weight":92,"slug":93},70,"exam",{"id":95,"doc_module":4,"doc_module_name":25,"category_name":96,"show_sort_weight":97,"slug":98},5,"Comic",60,"comic",{"id":100,"doc_module":4,"doc_module_name":25,"category_name":101,"show_sort_weight":102,"slug":103},6,"Technology",50,"technology",{"id":105,"doc_module":4,"doc_module_name":25,"category_name":106,"show_sort_weight":107,"slug":108},7,"Healthcare",40,"healthcare",{"id":110,"doc_module":4,"doc_module_name":25,"category_name":111,"show_sort_weight":112,"slug":113},8,"Research & Report",30,"research-report",{"id":115,"doc_module":4,"doc_module_name":25,"category_name":116,"show_sort_weight":117,"slug":118},9,"Religion & Spirituality",20,"religion-spirituality",{"id":117,"doc_module":4,"doc_module_name":25,"category_name":120,"show_sort_weight":117,"slug":121},"World Cup","world-cup",{"id":123,"doc_module":4,"doc_module_name":25,"category_name":124,"show_sort_weight":123,"slug":125},10,"Lifestyle","lifestyle",{"id":127,"doc_module":4,"doc_module_name":25,"category_name":128,"show_sort_weight":95,"slug":129},19,"General","general",{"code":4,"msg":81,"data":131},{"doc_id":78,"user_id":132,"nickname":42,"user_avatar":133,"doc_module":4,"category_id":33,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":22,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":139,"language":140,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":141,"faqs":142,"seo_title":143,"seo_description":12,"update_tm":79,"read_time":144},1099529839202,"https://ap-avatar.wpscdn.com/davatar_a8503ba1806abce46bf441b54a3ca4cd","FINANCIAL ACCOUNTING II  \nNON TRADING CONCERN  \nSome of the organizations or institutions are constituted to provide valuable services to the society with the objective not to earn profit. These organizations normally offer the services such as education, medical, social clubs, charitable trusts, trade unions, etc.  \nNON-TRADING ACCOUNT  \nMaintenance of proper books of accounts is necessary to safeguard the money of its members and general public from any kind of misuse or misappropriations. It is important to know the total receipts, total payments and also to know financial status of an institution. Hence, the account opened and maintained for and by the organizations is known as Nontrading account.  \nNormally, registration of members, minute book, cash receipt journal, cash payment journal, etc. are main record which is maintained by these organizations/ institutions in their non-trading accounts. At the end of an accounting period, these institutions prepare its final accounts, which include the following:  \n1. Receipt and Payment Account  \n2. Income and Expenditure Account  \n3. Balance-Sheet  \n1. Receipt and Payment Account  \nIt is a real account. Basic rule of double entries is followed to prepare this account. It is prepared from a cash book at the end of the accounting period. Every transaction regarding the cash transactions is recorded in the Cash Book in a chronological order. We may say that the Receipt and Payment account is a summary of cash payment and cash receipts during the current year.  \nFor example, if rent and salary paid on monthly basis all over the accounting period, and donation or subscription received during the current year recorded in a cash book date wise, but at the end of the accounting period, the Receipt and Payment account will contain total amount of rent paid, salary paid, subscription received and donation received. All cash receipt will be recorded on the debit side and all cash payment will be recorded on the credit side.  \n2. Income and Expenditure Account  \nIncome and expenditure account is a nominal account and as an equivalent to Profit and Loss account.  \nEssential Features of an Income and Expenditure Account  \n1. Expenses and losses are recorded in the debit side of it and all incomes and gains are recorded on the credit side.  \n2. Capital income and expenditure are excluded and revenue income and expenses are included in it.  \n3. It is based on a mercantile system of accounting, therefore, the income and expenses related to preceding years or subsequent years are excluded while preparing the income and expenditure account.  \n4. The credit balance of an income and expenditure account shows surplus. Further, excess of income over the expenditure and the debit balance of it show deficit i.e. excess of the expenditure over income.  \n5. Only nominal accounts are considered in preparation of this account.  \n3. Balance Sheet  \nThe date, on which a balance sheet is prepared, particulars of all the assets and liabilities are recorded in the same manner as we do in any other profit making firms. Its capital fund is made up of surplus income over expenditure and other incomes capitalized in the given period of time. Sometimes, two balance sheets need to be prepared.  \n1. At the beginning of the accounting year to know the opening capital fund  \n2. At the end of the financial year to know the financial position of the organization.  \nCONVERSION OF RECEIPT AND PAYMENT ACCOUNT INTO INCOME AND EXPENDITURE ACCOUNT  \nFollowing are the steps required to convert receipt and payment account into income & expenditure account  \n􀁸 Opening balance and closing balance of a receipt and payment account representing opening cash in hand, opening cash at bank, closing cash in hand, and closing cash at bank need to be ignored.  \n􀁸 Items of capital receipts and capital payment will be excluded while preparing an income and expenditure account.  \n􀁸 Revenue items of an income and expenditure will be considered ","cbCaicqQ9MNXsV75","https://ap.wps.com/l/cbCaicqQ9MNXsV75","pdf",1715688,28,"English","# Non-trading Concern\n## Non-trading Account\n## Receipt and Payment Account\n## Income and Expenditure Account\n## Balance Sheet\n## Conversion of Receipt and Payment Account into Income and Expenditure Account\n## Items Peculiar to Non-trading Concern\n### Donations\n### Legacy","[{\"question\":\"What is a non-trading account and why is it maintained?\",\"answer\":\"A non-trading account is the account opened and maintained by non-trading organizations to record their transactions. It is maintained to protect members’ and the public’s money and to understand total receipts, total payments, and the institution’s financial status.\"},{\"question\":\"What are the key characteristics of the Receipt and Payment Account?\",\"answer\":\"The Receipt and Payment Account is a real account prepared from the cash book at the end of the accounting period. Cash receipts are recorded on the debit side and cash payments on the credit side, summarizing cash transactions for the year.\"},{\"question\":\"How is a Receipt and Payment Account converted into an Income and Expenditure Account?\",\"answer\":\"Ignore opening and closing balances of cash in hand and at bank, exclude capital receipts and capital payments, and consider revenue items only during preparation. Also make adjustments for outstanding and prepaid expenses, provisions (e.g., bad debts and depreciation), income received in advance, and income receivable, while excluding items related to other years.\"}]","Financial Accounting II - Non-trading Concern - Non-trading Account | PDF",71]