Which of the following is does not relate to a non-for-profit-making organization?
Answer Details
The option that does not relate to a non-for-profit-making organization is the Profit and Loss Account.
Non-for-profit-making organizations, as the name suggests, are not established for the purpose of making profits. These organizations operate with a different motive, such as providing charitable services, promoting a cause, or carrying out religious or educational activities. As such, their financial statements differ from those of profit-making organizations.
A non-for-profit-making organization prepares a Receipts and Payments Account and a Balance Sheet, which provides a summary of cash receipts and payments, and the organization's financial position, respectively. The Receipts and Payments Account shows the cash and bank transactions of the organization, while the Balance Sheet shows the organization's assets, liabilities, and capital at a particular point in time.
Ledger accounts are used to record all financial transactions of an organization, including non-for-profit-making organizations. Ledger accounts are used to summarize the transactions and provide information for the preparation of financial statements.
However, the Profit and Loss Account relates to a profit-making organization and is used to determine the net profit or loss of the organization over a specific period. A non-for-profit-making organization does not have a Profit and Loss Account, as its aim is not to generate profits.
Therefore, the correct answer is "Profit and Loss Account".