Non profit making organization are those, which do not buy/manufacture and sell goods and whose primary object is not to earn profit. Their object is to do goods to the society through welfare activities; e.g. clubs, schools, colleges, hospitals, libraries etc.

A receipts and payments account is a summarized cash book for a given period.

The account through which surplus or deficit of a non-profit marking organization is ascertained,is called income and expenditure account.

The amount received from the members of organization monthly or annually as per rules is called subscription.

The additional subscription collected from members over and above the regular subscription for some special purpose such as construction of club's own building, charities to poor, awarding of prizes etc. is known as special subscription.



The amount which is paid by new member at the time of admission in addition to subscription is called admission fee.
Legacy refers to property received by virtue of a will of a person after his death.Acquisition of such property by an institution is regards as capital receipt.
The amount which is paid by members lump sum to become a life member of organization is called life membership fee.

Amount received from members and general public way of gift is known as donation.it is to be treated as capital or revenue depends upon the purpose for which the donation is collected.

Excess of total assets over total external liabilities of a non-profit seeking organization is called capital funds.it is also known as general fund, accumulated fund or surplus fund.