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TRADING CONCERNS 1 THEY BUY AND SELL GOODS AND SERVICES FINANCIAL ACCOUNTING& REPORTING 2 THEY AIM @ EARNING PROFIT RECIPTS AND PAYEMENT ACCOUNT-; NON TRADING CONCERNS 1 THEY DO NOT BUY AND SELL GOODS AND SERVICES. 2 THEY DO NOT AIM@ EARNING PROFIT MEANING- RECIEPTS AND PAYEMENTS ACCOUNT IS A SUMMARY OF CASH TRANSACTIONS. IT IS PREPARED BY A NON TRADING TRADING ORGANISATIONS AT EVREY END OF YEAR. IN IT OPENING BALANCE; CASH IN HAND AND ALL CASH RECEIPTS ARE SHOWN ON DEBIT SIDE.ALL CASH PAYEMENTS ARE SHOWN ON CREDIT SIDE. FEATURES -; 1 ACCOUNT IS A SUMMARY OF CASH BOOK AND BANK TRANSACTIONS. 2 ACCOUNT BEGINS WITH OPENING BALANCE OF CASH IN HAND AND @ BANK. 3 IT IS A REAL ACCOUNT. 4 PREPARED BY NON COMMERCIAL ORGANISATIONS. 5 PAYEMENT OF EVREY NATURE AND FOR WHATEVER PERIOD ENTERED ON CREDIT SIDE. 6 ALL CASH RECIPTS ARE SHOWN ON DEBIT SIDE. 7 IT DOES NOT REVEAL SURPLUS OR DEFICIT FOR YEAR. USES -; 1 IT SERVES AS THE BASIS FOR PREPARING THE INCOME & EXPENDITURE ACCOUNT& BALANCE SHEET . 2 IT INDICATES THE CASH POSITION OF THE ORGANISATION BOTH AT THE BEGINNING AND AT THE END OF EVREY ACCOUNTING YEAR . 3 LEGALLY REQUIRED UNDER COOPERATIVES SOCIETY ACT AND FULLFILS LEGAL REQUIREMENTS. RECIPTS AND PAYEMENT ACCOUNT 1 IT IS A PERIODICAL ACCOUNT 2 PART OF FINAL ACCOUNT CASH BOOK 1 IT IS A RUNNING ACCOUNT. 2 NOT A PART OF FINAL ACCOUNT INCOME & EXPENDITURE ACCOUNT IT IS AN ACCOUNT PREPARED BY A NON TRADING ORGANISATION TO ASCERTAIN THE SURPLUS OR DEFICIT FOR AN ACCOUNTING YEAR. IT IS EQUIVALENT TO THE PROFIT & LOSS ACCOUNT. SURPLUS- EXCESS OF INCOME OVER EXPENDITURE. DEFICIT-EXCESS OF EXPENDITURE OVER INCOME. SURPLUS OR DEFICIT IS TRANSFERED TO CAPITAL FUND IN BALANCE SHEET. FEATURES -; 1 IT IS A NOMINAL ACCOUNT 2 IT IS ALWAYS PREPARED FOR A PARTICULAR PERIOD USUALLY ONE ACCOUNTING YEAR. 3 THE OPENING AND CLOSING BALANCES ARE NOT RECORDED IN IT . 4 INCOME AND EXPENDITURE IS PREPARED IN A SAME MANNER AS PROFIT & LOSS IS PREPARED. 5 INCOME AND EXPENSES OF CURRENT YEAR IS RECORDED IN IT. WHILE INCOME AND EXPENSES OF PREVIOUS OR FUTURE YEARS ARE NOT RECORDED IN IT. USES - 1 IT SHOWS THE SURPLUS OR DEFICIT OF THE NON COMMERCIAL ORGANISATIONS DURING THE ACCOUNTING YEAR. 2 IT SERVES AS THE BASIS FOR PREPARING THE BALANCE SHEET AT THE END OF THE ACCOUNTING YEAR. 3 FULLFILLS THE STATUTORY REQUIREMENT. RECIPTS & PAYEMENT ACC SUMMARY OF CASH RECIPTS & CASH PAYEMENTS. CONTAINS BOTH REVENUE & CAPITAL ITEMS CONTAINS ONLY CASH ITEMS INC & EXPENDITURE ACCOUNT LIKE THE PROFIT AND LOSS ACC OF A TRADING CONCERN. CONTAINS ONLY REVENUE ITEMS CONTAINS NON CASH ITEMS INC & EXPENDITURE ACC PROFIT& LOSS ACC 1.ASCERTAIN SURPLUS OR DEFICIT 1.CALCULATE NET PROFIT OR NET LOSS 2.SHOWS SURPLUS OR DEFICIT 2.SHOWS NET PROFIT OR NET LOSS BALANCE SHEET-; IT IS A STATEMENT SHOWING THE ASSETS & LIABILITIES OF AN ORGANISATION & ITS CAPITAL ON A PARTICULAR DATE.DEPICTS THE FINANCIAL POSITION OF THE ORGANISATION ON A SPECIFIED DATE. FEATURES 1 IT IS ALWAYS PREPARED ON A PARTICULAR DATE. 2 IT IS NOT AN ACCOUNT BUT IS A STATEMENT. 3 SHOWS FINANCIAL POSITION ON A SPECIFIED DATE. 4 ASSETS ARE SHOWN ON RIGHT HAND SIDE AND LIABILITIES ON LEFT HAND SIDE. USES- 1 SHOWS ASSETS OWNED BY A NON TRADING ORGANISATION 2 REVEALS LIABILITIES OF THE ORGANISATION. 3 SHOWS FINANCIAL POSITION OF ORGANISATION. 4 FULL FILLS STATUTORY REQUIREMENT. ASSETS- REFER TO VALUABLE RESOURCES OWNED BY A BUISNESS FIRM. THESE ASSETS PROVIDE BENEFITS IN FUTURE PERIOD. 1. FIXED ASSETS- THESE ASSETS ARE PURCHASED FOR USE IN BUISNESS & TO GENERATE REVENUE AND NOT FOR RESALE. THEY ARE PERMANENT AND USED UNTIL THEIR USEFUL LIFE. EG LAND,FURNITURE ETC 2. CURRENT ASSETS- THESE ASSETS ARE CONVERTED INTO CASH WITHIN A SHORT PERIOD.THEY ARE OF 2 TYPES. LIQUID AND FLOATING. LIQUID ASSETS INCLUDE CASH IN HAND,CASH@BANK ETC . FLOATING ASSETS INCLUDE COMPRISE STOCK IN TRADE,SUNDRY DEBITORS. 3. WASTING ASSETS- VALUE OF THESE ASSETS DIMINISHES WITH PASSAGE OF TIME. 4. FICTITIOUS ASSETS- ARE DUPLICATE ASSETS OR EXPENSES OF HEAVY AMOUNTS WHICH ARE EXPECTED TO PROVIDE BENEFITS OVER SEVERAL YEARS.PRELIMNARY EXPENSES ARE EG OF FICTITIOUS ASSETS. LIABILITIES-; ARE DEBTS OWED BY THE FIRM & PAYABLE IN FUTURE. 1. FIXED LIABILITIES- THESE DEBTS ARE PAYABLE IN FUTURE OR IN LONG RUN.EG SHARE CAPITAL, DEBENTURES. 2. CURRENT LIABILITIES- THESE DEBTS ARE REPAYABLE IN NEAR FUTURE.EG BILLS PAYABLE,SHORT TERM LOANS. 3. CONTIGENT LIABILITIES- THESE LIABILITIES BECOME PAYABLE ON THE HAPPENING OF PARTICULAR EVENTS.IF EVENTS DOES NOT HAPPEN THESE ARE NOT PAYABLE. FIXED ASSETS CURRENT ASSETS THESE ASSETS ARE USED OVER A THESE ASSETS ARE USED GENERALLY LONGER PERIOD OF TIME. WITHIN A YEAR. DEPRECIATION ARE CHARGED ON IT DEPRECIATIONS ARE NOT CHARGED ON EVREY YEAR. IT EVREY YEAR.
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