Difference between Trading and nonTrading Organisation

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The difference between a trading and non-trading organization is that a non-trading organization does not exist to make a profit whereas a trading organization does . Non-trading organizations exist to provide voluntary services to the public. Trading organizations exist to provide services or goods for profit.

Trading Concerns: Accounts (https://learn.financestrategists.com/finance-terms/account-definition/) are maintained using the double-entry system. Trial balance (https://learn.financestrategists.com/explanation/trial-balance/purpose-of-preparing-a-trial-balance/) is drafted to improve the arithmetic accuracy of the accounts books, and the income and expense summary is prepared to ascertain the net income or loss of the business.
Non-trading Concerns: The double-entry system is used, but only a cash book is maintained. The receipts and payments account is prepared instead of the trial balance, and the income and expenditure account (https://learn.financestrategists.com/explanation/non-trading-concerns/income-expenditure-account/) is prepared to show how much income (https://learn.financestrategists.com/finance-terms/income/) has exceeded expenditure (https://learn.financestrategists.com/finance-terms/expenditure/) , or vice versa.