Top ads from clicksor

Friday, June 4, 2010

Non-Trading Concern

Non-trading concerns are also called as non-trading institutions or organizations which are established for rendering services to the society or its members. Their aim is not to earn profit but to promote and to provide the recreational facilities in the field of sports, are and culture, education, health etc.

Examples of non-trading concerns are:
  • Educational institutions as colleges, schools.
  • Clubs as Lion Club.
  • Societies as Red Cross Society.
  • Charitable hospitals.
  • Unions as trade union, labour unions.
  • Libraries, hostels.
  • Associations etc.
Features of Non-trading organization;
  1. The main aim of such organization is not to earn profit but to render services to the society or its members.
  2. Non-trading organization may have excess of income over expenditures (surplus) but they are not distributable among the members; the surplus (profit) is used for the strengthening the organizational goal.
  3. Most of the transactions are dealt with cash rather than credit.
  4. The main sources of income of such organizations may be subscription from members, donation from general public, grants from other government etc.
  5. They do not prepare Trading and Profit and Loss Account.

No comments:

Post a Comment

Your Luck Goes Here

Search your luck

Search Term:


Add to Technorati Favorites