Expenditure on Purchase of Building is a ___________ Expenditure.
- ✓Capital
- BRevenue
- CGeneral
- DRecurring
Answer: A.
View full solution →Question types
Accounts of ‘Not for Profit’ Concerns question types
170 questions across 10 question groups — pick any mix to generate a Book Keeping & Accountancy paper with step-by-step answer keys.
170
Questions
10
Question groups
5
Question types
01
Select the correct option (MCQ)
29 Q→02Find an odd one.
5 Q→03Complete the following sentences
10 Q→04State whether the following statements are true or false with reasons
16 Q→05Write a word/phrase/term which can substitute the following statement.
30 Q→06Answer in One Sentence
20 Q→07do as per instruction
6 Q→08complete the table
16 Q→09Do as instructed
23 Q→10Fill in the blanks.
15 Q→Sample Questions
Accounts of ‘Not for Profit’ Concerns questions
One sample from each question group in this chapter. Select any group above to see the full set with answer keys.
Not for Profit organization is also called ___________ organization.
- ✓service
- Btrading
- Cprofit-making
- Dcommercial
Answer: A.
View full solution →The closing balance of Receipts and Payments Account usually represent ___________
- AClosing stock
- ✓Cash and Bank Balance
- CSurplus
- DDeficit
Answer: B.
View full solution →Not for Profit concern prepares ___________ Account instead of Profit and Loss Account to know the result.
- ATrading
- ✓Income and Expenditure
- CCash
- DReceipt and Payments
Answer: B.
View full solution →Excess of Income over Expenditure is termed as ___________
- ADeficit
- BProfit
- ✓Surplus
- DLoss
Answer: C.
View full solution →Surplus, Deficit, Net Profit, Capital fund.
Reliance Industries, Venna Vidya Mandir, Laxmi Hospital, Manoj Sports club.
Subscription, Stationery, Interest Received, Locker Rent received.
Machinery, Furniture, Computers, Salaries.
Trading Account, Profit and Loss Account, Receipts and Payments Account, Balance Sheet.
The transactions recorded in the Income and Expenditure Account related only to the ___________ year.
Subscription received from the members is considered as ___________ receipts.
Mumbai University prepares ___________ Account instead of a Profit and Loss account.
Income and Expenditure Account is a ___________ Account.
Credit side of Receipts and Payments Account shows cash ___________
Excess of Assets over liabilities is called Capital Fund.
The Receipts and Payments Account contains only the transactions relating to the current year.
Income and Expenditure Account is a Real Account.
Purchases of Sports Equipments is a Capital Expenditure.
Not for Profit concerns do not prepare a Balance Sheet.
All such receipts are non-recurring in nature and not forming a part of a regular flow of income.
To excess of total assets over total liabilities of a Not for Profit concern.
The credit balance of Income and Expenditure Account.
The income is earned during the year but not received during the year.
Accounts which records only cash transactions in case of Not for Profit concerns.
To which account ‘Surplus’ or ‘Deficit’ is transferred?
What do you mean by Non-recurring Expenses?
What is Surplus?
What is ’Legacy’?
What is a Subscription?
Treatment of Stationery
Balance Sheet as on 31st March 2017
Liabilities | Amount ₹ | Amount ₹ | Assets | Amount ₹ | Amount ₹ |
|
|
| Stock of Stationery |
| 800 |
Receipts and Payments Account for the year ended 31st March 2018
Receipts | Amount ₹ | Amount ₹ | Payments | Amount ₹ | Amount ₹ |
|
|
| By Stationery Purchased |
| 7,000 |
Adjustments :
1) ₹ 1,500 is Outstanding for Stationery Bill.
2) Stock of Stationery on 31st March 2018 was ₹ 1,300.
With the help of above information calculate the amount of stationery cosumed during the year.
Library Books ₹ ……………? Less 10% Depreciation ₹ 5,000 = ₹ 45,000.
Salary ₹ 10,000, outstanding salary ₹ 5,000. Calculate the salary to be debited to the Income and Expenditure Account.
Opening stock of stationery ₹ 5,000, purchases of stationery ₹ 7000, outstanding stationery bill ₹ 12,000, closing stock ₹ 1000. What is the amount of stationery consumed?
12 % p.a. Interest on Bank loan ₹ 80,000 for 1 year.
Dr. Abhinav Bharat started practice of Medical Practitioner on 1st April 2019, He gives you the Receipts and Payments Account for the year ended 31st March 2020 and the adjustments.
Prepare Income and Expenditure Account and Balance Sheet for the year ended 31st March
2020.
Additional Information :
1) Receipts in Arrears are Visit Fees ₹ 2,000 and Dispensary ₹ 500
2) Outstanding Expenses - Rent ₹ 500 and Salaries ₹ 1,000
3) Stock of drugs was ₹ 1,000
4) Depreciate Furniture @ 8 % p.a. and Equipments ₹ 500.
5) 40% of conveyance are for domestic purpose.
Prepare Income and Expenditure Account and Balance Sheet for the year ended 31st March
2020.
| Dr. | Dr. Abhinav Bharat Receipts and Payments Account for the year ended 31st March 2020 | Cr. | |
| Receipts | Amount ₹ | Payments | Amount ₹ |
| To Cash introduced | 25,000 | By Furniture | 8,000 |
| To Visit fees | 10,000 | By Equipments | 10,000 |
| To Receipts from Dispensary | 30,000 | By Drugs | 7,000 |
| To Sundry Receipts | 5,000 | By Salaries | 12,000 |
| By Rent | 6,000 | ||
| By Conveyance | 4,000 | ||
| By Stationery | 500 | ||
| By Electrical Charges | 5,000 | ||
| By Journals | 500 | ||
| By Drawings | 2,000 | ||
| By Balance c/d | |||
| 70,000 | 70,000 | ||
1) Receipts in Arrears are Visit Fees ₹ 2,000 and Dispensary ₹ 500
2) Outstanding Expenses - Rent ₹ 500 and Salaries ₹ 1,000
3) Stock of drugs was ₹ 1,000
4) Depreciate Furniture @ 8 % p.a. and Equipments ₹ 500.
5) 40% of conveyance are for domestic purpose.
From the following Receipts and Payments Account and additional information prepare Income and Expenditure Account for the year ended 31st March 2019 and Balance Sheet as on that date.
Additional Information :
1) Outstanding Rent was ₹ 200
2) Subscription includes ₹ 1,000 as Subscription received in advance and subscription outstanding for current year was ₹ 500.
3) Depreciate Furniture @ 8 % p.a.
4) 50 % Entrance fees should be capitalised
5) Capital Fund was ₹ 3,000
| Dr. | Receipts and Payments Account for the year ended 31st March 2019 | Cr. | |
| Receipts | Amount ₹ | Payments | Amount ₹ |
| To Balance b/d | 3,000 | By Salaries | 4,000 |
| To Subscription | 5,000 | By Printing & Stationery | 1,000 |
| To Donations (Revenue) | 5,000 | By Commission | 500 |
| To Entrance fees | 4,000 | By Rent | 2,000 |
| To Interest | 1,000 | By Electric Charges | 1,500 |
| By Furniture | 8,000 | ||
| By Balance c/d | 1,000 | ||
| 18,000 | 18,000 | ||
1) Outstanding Rent was ₹ 200
2) Subscription includes ₹ 1,000 as Subscription received in advance and subscription outstanding for current year was ₹ 500.
3) Depreciate Furniture @ 8 % p.a.
4) 50 % Entrance fees should be capitalised
5) Capital Fund was ₹ 3,000
The following are the details of Subscription, as per Receipts and Payments Account. Subscription received during the year 2018 - 19 ₹ 50,000 Subscription outstanding on 31st March 2018 ₹ 10,000. Subscription outstanding on 31st March 2019 ₹ 20,000. Subscription received in advance as on 31st March 2018 ₹ 15,000. Subscription received in advance as on31st March 2019 ₹ 10,000
You are required to show its presentation in Income and Expenditure Account for the year
ended 31st March 2019 and a Balance Sheet as on that date.
You are required to show its presentation in Income and Expenditure Account for the year
ended 31st March 2019 and a Balance Sheet as on that date.
Simple Example - Prepare Income and Expenditure Account only
From the following Receipts & Payments Account and Adjustments given below you are required to prepare Income and Expenditure Account for year ended 31st March 2020 of Venna Cultural Association, Satara.
Adjustments :
1) Outstanding Rent for the current year was ₹ 7,000.
2) 60 % Entrance fees should be capitalised.
3) Outstanding subscription for the current year was ₹ 20,000.
4) Prepaid Insurance ₹ 1,000.
From the following Receipts & Payments Account and Adjustments given below you are required to prepare Income and Expenditure Account for year ended 31st March 2020 of Venna Cultural Association, Satara.
| Dr. | Receipts & Payments Accounts for the year ended 31st March 2020 | Cr. | |||
| Receipts | Amount | Amount _(₹) | Payments | Amount _(₹) | Amount _(₹) |
| To Balance b/d | By Rent | ||||
| Cash in Hand | 10,000 | 2018-19 | 700 | ||
| Cash at Bank | 19,200 | 29,200 | 2019-20 | 54,300 | 55,000 |
| To Subscriptions | - | By Fixed Deposit | 47,000 | ||
| 2018-19 | 15,000 | By Sundry Exp. | 8,000 | ||
| 2019-20 | 1,00,000 | By Insurance | 12,000 | ||
| 2020-21 | 8,000 | 1,23,000 | By Printing & Stationery | 6,000 | |
| To Donations | - | 25,000 | By Picnic Expenses | 18,000 | |
| (General) | By Salaries | 20,000 | |||
| To Entrance fees | 15,000 | By Traveling Expenses | 13,000 | ||
| To Interest on Fixed | 4,800 | By Advt. (2018 - 19) | 7,000 | ||
| Deposit | By Balance c/d | ||||
| To Picnic Receipts | 20,000 | Cash in Hand | 15,000 | ||
| Cash at Bank | 16,000 | 31,000 | |||
| 2,17,000 | 2,17,000 | ||||
1) Outstanding Rent for the current year was ₹ 7,000.
2) 60 % Entrance fees should be capitalised.
3) Outstanding subscription for the current year was ₹ 20,000.
4) Prepaid Insurance ₹ 1,000.
Outstanding Expenses and Prepaid Expenses of the current year and previous year Balance Sheet as on 31st March 2018
Adjustment : Outstanding Salaries for the current year was ₹ 5,500, show the presentation of Salaries in the Final Accounts of a concern for the year 2018 - 19.
| Dr. | Balance Sheet as on 31st March 2018 | Cr. | |||
| Liabilities | Amount ₹ | Amount ₹ | Assets | Amount ₹ | Amount ₹ |
| Prepaid Salaries (for 2018-19) | 2,000 | ||||
| Dr. | Receipts & Payments Account for the year ended 31st March 2019 | Cr. | |||
| Receipts | Amount ₹ | Amount ₹ | Payments | Amount ₹ | Amount ₹ |
| By Salaries | |||||
| 2018-19 | 30,000 | ||||
| 2019-20 | 1,000 | 31,000 | |||
Given below is the Balance Sheet of Yesubai Mahila Mandal on 01.04.2018 and Receipts and Payments Account for the year ending 31.03.2019.
Additional Information :
1) Rent for last two months ₹ 5,000 is still due.
2) Stationery Expenses payable on 31st March 2019 were ₹ 450.
3) Outstanding Subscription for 2018 - 19 was ₹ 3,000.
4) Entrance fees should be capitalised.
5) Depreciate Furniture @ 10 % p.a.
You are required to prepare Income and Expenditure Account for the year ended 31st
March 2019 and a Balance Sheet as on that date.
| Balance Sheet as on 1st April 2018 | ||||
| Liabilities | Amount ₹ | Assets | Amount ₹ | |
| Capital Fund | 30,000 | Cash in Hand | 3,000 | |
| Outstanding Expenses | Cash at Bank | 8,000 | ||
| Salary 8,000 | Furniture | 20,000 | ||
| Rent 7,000 | Outstanding Subscription | 8,500 | ||
| Stationery | 1,000 | 16,000 | 6% Investment | 6,500 |
| 46,000 | 46,000 | |||
| Dr. | Receipts & Payments Accountfor the year ended 31st March 2019 | Cr. | |
| Receipts | Amount ₹ | Payments | Amount ₹ |
| To Balance b/d | By Rent | 25,000 | |
| Cash in Hand | 3,000 | By Stationery | 3,000 |
| Cash at Bank | 8,000 | By Salaries | 22,000 |
| To Entrance fees | 28,000 | By Furniture Repairs | 1,800 |
| To Subscriptions | By Honorarium to Secretary | 16,000 | |
| 2017-18 2,000 | By Miscellaneous Expenses | 2,000 | |
| 2018-19 45,000 | By Balance c/d | ||
| 2019-20 3,000 | 50,000 | Cash in Hand | 8,200 |
| To Miscellaneous receipts | 5,000 | Cash at Bank | 16,000 |
| 94,000 | 94,000 | ||
1) Rent for last two months ₹ 5,000 is still due.
2) Stationery Expenses payable on 31st March 2019 were ₹ 450.
3) Outstanding Subscription for 2018 - 19 was ₹ 3,000.
4) Entrance fees should be capitalised.
5) Depreciate Furniture @ 10 % p.a.
You are required to prepare Income and Expenditure Account for the year ended 31st
March 2019 and a Balance Sheet as on that date.
Following is the summary of Receipts and Payments of Jay Hanuman Vyayamshala, Aurangabad for the year ended 31st March 2020.
Additional Information :
1) Jay Hanuman Vyayamshala has ₹ 5,000 members paying annual subscription ₹ 50 each.
2) Outstanding Salary ₹ 12,000.
3) On 1st April, 2019 the assets stood as under.
a) Land & Building ₹ 70,000
b) Furniture ₹ 45,000
Depreciate the above assets at 10 % p. a.
4) Income Accrued on Investment is ₹ 2,000
5) 50 % Entrance fees and 60 % of Donations should be capitalised.
Prepare Income and Expenditure Account for the year ended 31st March 2020 and also Balance Sheet as on same date.
Additional Information :
1) Jay Hanuman Vyayamshala has ₹ 5,000 members paying annual subscription ₹ 50 each.
2) Outstanding Salary ₹ 12,000.
3) On 1st April, 2019 the assets stood as under.
a) Land & Building ₹ 70,000
b) Furniture ₹ 45,000
Depreciate the above assets at 10 % p. a.
4) Income Accrued on Investment is ₹ 2,000
5) 50 % Entrance fees and 60 % of Donations should be capitalised.
Prepare Income and Expenditure Account for the year ended 31st March 2020 and also Balance Sheet as on same date.
Following is the Receipts and Payments Account of Chamber of Commerce, Beed for the year ended 31st March 2018 and same additional information. You are required to prepare Income and Expenditure Account for the year ended 31st March 2018 and Balance Sheet as on that date.
Additional Information :
1) Assets and liabilities on 1st April 2017 were as follows :
Outstanding Subscription ₹ 10,000, Machinery ₹ 50,000, Building Fund ₹ 2,10,000, Investment ₹ 3,00,000.
2) Depreciate Machinery by ₹ 2,500.
3) Donations received for Building fund.
4) Outstanding subscription for the current year was due for ₹ 6,000.
| Dr. | Receipts and Payments Account for the year ended 31st March 2018 | Cr. | |
| Receipts | Amount ₹ | Payments | Amount ₹ |
| To Balance b/d | 22,250 | By Insurance | 10,000 |
| (Cash at Bank) | By Printing & Stationery | 4,000 | |
| To Subscription | 72,000 | By Books | 30,000 |
| (including ₹ 8,000 for 2016 - 17) | By Computers | 60,000 | |
| To Sale of Machinery | 20,000 | By Traveling Expenses | 4,000 |
| (Book value ₹ 25,000) | By Furniture | 62,000 | |
| To Donations | 55,000 | By Balance c/d | 5,250 |
| To Admission fees (Revenue) | 6,000 | (Cash at Bank) | |
| 1,75,250 | 1,75,250 | ||
1) Assets and liabilities on 1st April 2017 were as follows :
Outstanding Subscription ₹ 10,000, Machinery ₹ 50,000, Building Fund ₹ 2,10,000, Investment ₹ 3,00,000.
2) Depreciate Machinery by ₹ 2,500.
3) Donations received for Building fund.
4) Outstanding subscription for the current year was due for ₹ 6,000.
Following is the Balance Sheet on 1st April 2019 and Receipts and Payments Account of Dayanand Library Ambajogai. You are required to prepare Income and Expenditure Account of the year ended 31st March 2020 and Balance Sheet as on that date.
Balance Sheet as on 31st March 2019 | |||
Liabilities | Amount ₹ | Assets | Amount ₹ |
Capital Fund | 7,50,000 | Furniture | 50,000 |
Subscription received in Advance | 3,000 | Books | 6,50,500 |
Outstanding Expenses | 2,000 | Stock of Postage stamps | 500 |
Investments in Securities | 7,000 | ||
Cash in Hand | 7,000 | ||
Cash at Bank | 40,000 | ||
7,55,000 |
| 7,55,000 | |
Dr. | Receipts and Payments Account for the year ended 31st March 2020 | Cr. | |
Receipts | Amount ₹ | Payments | Amount ₹ |
To Balance b/d |
| By Salaries | 24,000 |
Cash | 7,000 | By Purchase of Postage Stamps | 1,500 |
Bank | 40,000 | By Books (Purchased on 1-10-19) | 1,00,000 |
To Members Subscription | 1,80,000 | By Outstanding Expenses Paid | 2,000 |
To Entrance fees | 30,000 | By Investments in Fixed Deposit | 50,000 |
To Sale of old News Papers | 2,000 | By Furniture (Purchases on 1-7-2019) | 30,000 |
To Hire of Lecture Hall | 10,000 | By Printing & Stationery | 6,000 |
To Interest on securities | 5,000 | By Rent | 18,000 |
To Life Members Fee | 10,000 | By Balance c/d |
|
Cash | 9,500 | ||
Bank | 43,000 | ||
|
| ||
| 2,84,000 |
| 2,84,000 |
Adjustments :
1) Depreciation on Books at 10 % p.a.
2) Depreciation on Furniture at 8.5 % p.a.
3) 50 % Entrance fees and whole amount of Life Membership Fees should be capitalised.
4) Library had 2,000 members paying Subscription ₹ 100 each.
5) The value of unused Postage Stamps was ₹ 200.
Saraswati High School, Khed showed the following position on 31st March 2018
Balance Sheet as on 31st March 2018 | |||||
Liabilities | Amount (₹) | Amount (₹) | Assets | Amount | Amount (₹) |
Capital Fund | - | 6,80,000 | Cash in Hand |
| 5,000 |
Entrance fees |
| 20,000 | Cash at Bank |
| 8,000 |
Laboratory |
| 15,000 | |||
Building | 6,00,000 | ||||
Furniture | 40,000 | ||||
Books | 22,000 | ||||
Tuition fees Receivable |
| 10,000 | |||
7,00,000 | 7,00,000 | ||||
Additional Information :-
1) Tuition fees are outstanding for current year ₹ 5,000
2) Salary to teachers is outstanding ₹ 15,000
3) Rent paid in advance is ₹ 3,000
4) Depreciation on Books @ 15 % p. a. and 10 % on Furniture.
You are required to prepare Income & Expenditure Account for the year ended 31st March, 2019 and a Balance Sheet as on that date.
Incomes or Expenses having recurring nature are known as ______________ incomes or expenses.
All Receipts and Payments are recorded in the Receipts and Payment Account ______________ of the year.
All revenue incomes and revenue expenses are to be recorded in ______________
Life membership fees, Legacy, Surplus, etc. are to be ______________ to Capital Fund.
Locker’s rent is ______________ for ‘Not for Profit’ concern.
Generate a Accounts of ‘Not for Profit’ Concerns paper free
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