In a not-for-profit making organization, the cash book is summarized in the form of
Answer Details
In a not-for-profit making organization, the cash book is summarized in the form of a receipts and payments account. This is because not-for-profit organizations do not have the objective of making a profit. Rather, their objective is to provide services or support a particular cause. The receipts and payments account summarizes all cash transactions, including both revenue and capital items, during a specific period of time, usually a year. It shows the opening balance of cash, the total of all receipts during the period, the total of all payments during the period, and the closing balance of cash. This account provides a summary of the organization's cash position and is used to prepare the income and expenditure account and balance sheet.