Charitable organisation is generally considered as a non profit oriented organisation.

An advance receipt of subscription from a member of the non-profit organisation is considered as a liability.

Subscription income for the current year irrespective of whether the money is received or not is shown in income and expenditure Account.

Incomes greater than expenditures of a non-profit organisation gives rise to surplus.

 Non profit organisations does not prepare the income statement .

Government bonds, books and fixed deposit is shown as assets in the balance sheet.

Receipts and Payments Account resembles the cash book.

Revenue expenditure is shown on the expense side of income and expenditure account.

Balance sheet is regarded as apt to show the purchase of a fixed asset

Civil hospital is an example of non-trading concern.