What Are The Differences Between A Normal Trading And Non Trading Concern.

This article describes the major differences between a normal trading and non-trading concerns ( like clubs and societies)

In the case of the Trading Concern:

1. Profit-motive
2. The incomes derived mainly from the trading in the buying and selling of goods and services
3. Maintain Cash Book
4. Maintain a Profit & Loss Account
5. The word Capital is used
   

As for the Non-Trading Concern like a club or a society:

1. It is normally non profit motive
2. Sources of Income mainly related to clubs, societies and associations
3. The Cash book is called Receipts and Payments Account
4. The Profit & Loss Account or Income Statement is called Income and Expenditure Account
5. Instead of using Capital, it is called Accumulated Fund