Organisations are of two types:
a. Profit making organisations
are the business organisations whose main objective is to earn profit by
selling goods or providing services. These organizations are formed with
Profit-Motive.
b. Not-for-Profit organisations are formed to promote certain cultural, recreational, religious,
political, educational, medical activities etc. These organizations are formed
with Service Motive. This chapter helps in understanding the major differences
involved in doing accounting for profit making organizations and Non Profit
making organizations.
