DOWNLOAD MOBILE APPLICATION TO LEARN MORE: NON PROFIT ORGANISATION CLASS 12 ACCOUNTANCY
DOWNLOAD MOBILE APPLICATION TO LEARN MORE: NON PROFIT ORGANISATION CLASS 12 ACCOUNTANCY
DOWNLOAD MOBILE APPLICATION TO LEARN MORE: NON PROFIT ORGANISATION CLASS 12 ACCOUNTANCY
Table of Contents
NON PROFIT ORGANISATION CLASS 12 ACCOUNTANCY
1. Non-profit organisation prepare–
(a) Trading Account
(b) Profit & Loss Account
(c) Income & Expenditure Account
(d) Manufacturing Account
Ans. c
2. Receipts and Payment Account shows–
(a) Summarised figures of Cash Book
(b) Cash receipts and cash payments
(c) Capital and revenue items
(d) All of the above
Ans. d
3. The difference of the Receipts and Payment Account reveals–
(a) Net Profit
(b) Surplus or Deficit
(c) Cash Balance
(d) None of these
Ans. c
4. Subscription received in advance is–
(a) an asset
(b) a liability
(c) an income
(d) an expense
Ans. b
5. Donations received for a specific purpose–
(a) should be capitalised
(b) should be considered as revenue receipt
(c) may be capitalised or taken as revenue receipt
(d) should not be recorded at all
Ans. a
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6. Life membership fees received–
(a) may be capitalised
(b) may be taken as revenue receipt
(c) should be capitalised
(d) should be taken as revenue receipt
Ans. c
7. Interest received from Building Fund Investments should be–
(a) credited to Income & Expenditure A/c
(b) credited to Building Fund A/c
(c) credited to Building Fund Investment A/c
(d) debited to Building Account
Ans. b
8. Receipt of legacy should be treated as–
(a) a revenue receipt
(b) a capital receipt
(c) Both of these
(d) none of these
Ans. b
9. If a sports fund is created, then sports expenses are transferred to–
(a) Income & Expenditure A/c
(b) Sports Fund
(c) Sports Fund Investment
(d) none of these
Ans. b
10. When the tournament expenses incurred are more than the tournament fund, then the excessive amount is–
(a) debited to Income & Expenditure A/c
(b) credited to tournament fund
(c) taken on the asset side of the balance sheet
(d) credited to Income & Expenditure A/c.
Ans. a
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11. Income and expenditure account shows a balance of:
(a) Cash in hand
(b) Capital Account
(c) Net Profit
(d) Excess of revenue over expenditure or vice versa
Ans. d
12. Subscriptions in arrears at the end are shown
(a) On the credit side of income and expenditure account by ways of addition to subscription received andon the asset side of balance.
(b) Debit side of the profit and loss account and the liabilities side of balance sheet.
(c) Only on the asset side of balance sheet.
Ans. a
13. Receipts and payments account generally shows:
(a) Credit balance
(b) a debit balance
(c) Capital Fund
(d) Surplus or deficit
Ans. b
14. Second hand machinery worth ₹ 30,000 was purchased, it was repaired for ₹ 3,000 and installed by worker to whom ₹ 1,000 were paid as wages. The machinery should be capitalised for:
(a) ₹ 25,000
(b) ₹ 27,500
(c) ₹ 34,000
(d) None of above
Ans. c
15. At the beginning of an accounting year, a club has ₹ 19,000 assets; ₹ 5000 liabilities; ₹1,800 debit balance of income and expenditure account, the opening capital fund is:
(a) ₹ 18,000
(b) ₹ 11,200
(c) ₹ 15,800
(d) ₹ 24,800
Ans. d
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16. Salary payable for current year amount to ₹ 8,500 at the end of the year, outstanding salaries amount to ₹ 300. Salaries paid in advance last year relating to the current year amounted to ₹ 500. Prepaid salaries for the next year amount to ₹ 250. Total amount paid for salaries during the year is:
(a) ₹ 7,550
(b) ₹ 7,500
(c) ₹ 7,950
(d) ₹ 6,550
Ans. c
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FILL IN THE BLANKS
1. Opening statement of affairs is prepared to find out the opening balance of………. fund
Ans. Capital
2. Honorarium paid is ………. to Income & Expenditure Account.
Ans. Debited
3. Receipt and Payments Account is a………. account.
Ans. Real
4. Income and Expenditure Account is a………..account.
Ans. Nominal
5. Income and Expenditure Account is prepared on………. basis of accounting.
Ans. Accrual
6. Prize Fund Investments are shown on the ……….. side of the Balance Sheet.
Ans. Assets
7. Receipt of legacy should be treated as a… ……….. receipt.
Ans. Capital
8. Interest on the General Fund Investments is credited to ………..
Ans. Income and Expenditure Account
9. Subscription received in advance is shown in the ………….
Ans. Balance Sheet
10. Subscription received for Governor’s Party should be taken in the …………..
Ans. Balance Sheet
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11. If income is 32,000 and deficit debited to capital fund is 8,600 the expenditure is……….
Ans. ₹ 20,300
12. A Receipt and Payment Account makes no distinction between………. and……….receipts and payments.
Ans. Capital and Revenue
13. The closing balance of receipts and payments Account represents………..
Ans. Closing cash or Bank balance
14. ……….. represents the excess of assets over liabilities.
Ans. Capital Fund
15. Expenditure is shown on the………side of the income and expenditure account.
Ans. Debit
16. Amount received in respect of………or…….subscriptions should be eliminated while preparing the income and expenditure account.
Ans. Outstanding
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TRUE OR FALSE QUESTIONS
1. When tournament fund is existing, the tournament expenses should be debited to Income & Expenditure Account.
False
2 Excess of income over expenditure is called deficit.
False
3. Revenue items are shown in the Income & Expenditure Account.
True
4. Receipts and Payments Account records the expenses and incomes of the current year only.
True
5. Income and Expenditure Account records the expenses and incomes of the current year only.
True
6. Any expenditure concerning a specific fund must be credited to the specific fund concerned.
False
7 Receipts and Payments Account is a summary of all capital receipts and payments.
False
8. Receipts and Payment Account shows opening and closing cash balances.
True
9. Any interest received on Prize Fund Investments is credited to Prize Fund Account.
True
10. The donations paid are always taken in the Income and Expenditure Account.
True
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11. Donations unless otherwise stated is to be taken asa capital receipts.
True
12. Donations received for construction of hospital building is to be credited to building account.
False
13. A Non-profit organisation never undertakes trading activities.
True
14. Amount paid for purchase of sports goods by a sports club is revenue expenditure.
True
15. In case, a sports fund is maintained, all expenses on sports are debited to income and expenditure account.
False
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16. Any subscription received in advance are treated as capital receipts and are therefore taken to the liabilities side of the balance sheet.
False
17. Sale of old materials must be credited to capital fund in the balance sheet.
False
18. Receipts and Payments Account is nothing but a consolidated summary of the cash book.
False
19. Scholarships distributed to needy students out of government grants received for this purpose are debited to capital fund.
False
20 Payment of honorarium is treated as a capital expenditure.
False
21 Income and expenditure account is a real account.
False
22. Only capital expenses are shown in the Receipts and Payments Account.
False
23. Income from building fund investments should be credited to income and expenditure account.
False
24. Entrance fees to a club is shown as a payment.
False
25. Income and expenditure relating to special funds should not be dealt with in the income and expenditure account.
True
26. A public library is a non-profit entity.
True
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ALSO VISIT : CBSE SAMPLE PAPER ACCOUNTANCY CLASS 12 TERM 2
Accounting for non profit organization in Hindi term 2 class