Final Accounts Of Non-Trading Concerns

final-account-trading-account-pl-acc-balance-sheet-1-6381) What are non-trading concerns ?

None -trading concerns or non-profit organisations are concerns which do not undertake trading,but render social services,such as the promotion of art, culture, literature,sports,entertainment,education,science, charity etc. to members and evens to the public without aiming at profit.They include literary societies, educational institutions,hospitals,charitable institutions,recreation clubs,sports clubs,etc.

2) What are the books of account maintained by non-trading concern  ?

Non-trading concerns do not maintain a full set of books of account.They ,usually, maintain a cash book,a journal and a ledger.The cash book is maintained for recording all cash  transactions.The  journal is maintained for recording non-cash transaction. The ledger is maintained  for  keeping the various ledger accounts.

3) What do you mean by a capital receipt ?

A capital receipt is  a receipt on  account of a capital item ,say,capital introduced into the concern by the owners sale proceed of fixed assets and investments non- recurring receipts etc

4) What do  you  mean  by a revenue  receipt  ?

 A revenue receipt is a receipt on account of a revenue item,say, sale proceeds of goods, any income received, etc.

5) what is a capital expenditure    ?

A capital expenditure  is an  expenditure  the benfit of which is not exhausted in just one year, but extends to more  than one year .It can  also be  defined  as an  expenditure  incurrend on the acquisition of any  fixed asset or  for increasing the  productivity or revenue-earning capacity of the business .

6 What is a revenue expenditure ?

 A  revenue  expenditure is an  expenditure the benefit  of which is exhausted within one year.It is  incurred for the day-to day running  of the business or for maintaing the fixed asset of business in efficient working condition.

7) What is a deferred revenue expenditure ?

A deferred revenue expenditure is a revenue expenditure   which is not completely written off in the year in which it is incurred but is spread over the years during  which its benefit is available .Huge amount  spend on advertising  a newly introduced product exceptionally  heavy amount spent on repairs to an old asset,heavy expenses incurred on the shifting of a business to a more convenient place  preliminary expenses ,etc.,are some of the examples  deferred  revenue expenditure.

8) what is capital profit ?

Capital profit refers to profit made on the sale of any  capital asset ,say,any fixed asset or investment ,profit made on securing  capital  for the  business ,say,premium on the issue of  shares or debentures, the profit made on the  repayment of capital,say, profit made on the redemption of preference shares, profit made on  the repayment of any long-term liability,say,profit made on the redemption of debentures, profit made on the acquisition of a  business, etc .Capital profit is non-recurring,e.,it does not occur repeatedly or again and again.