As we know, the non-profit organisations do not trade in goods or provide services with a profit motive. But, they also need to maintain proper records of incomes, expenses, assets, and liabilities. Their major source of income is donations, subscriptions, grants, etc. Therefore, most of their transactions are in cash or through the bank account. Like any business, non-profit organizations need a healthy cash flow to run. Unlike profit businesses, non-profit bookkeeping relies on choosing an accounting method to record incoming and outgoing money. In accounting for non-profit organizations, instead of maintaining a Capital A/c, these organizations maintain Capital Fund or General Fund A/c. They credit this account with the surplus, life membership fees, donations, legacies, etc. The presentation provides in-depth knowledge on the topic.

Vidya V

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