CBSE Class 12 Accountancy Accounting for Not for Profit Organisation MCQs Set 01

Question. Income and Expenditure account shows transactions of Capital nature for the accounting year. (TRUE/FALSE)

Ans:  False

Question. Surplus or Deficit of a non-profit organisation is added to or subtracted from accumulated fund (TRUE/FALSE)

Ans:  True

Question. A NPO has a Match Fund of <1,00,000 and Match Expenses of <40,000 Match fund and Match expenses will be shown in the liabilities side of the Balance Sheet , expenses being deducted from fund.(TRUE/FALSE)

Ans:  True

Question. An advance receipt of subscription from members of Not-for–profit organisation is an Asset. (TRUE/ FALSE)

Ans:  False

Question. Under NPO, sale of old newspaper is shown as an income (TRUE/FALSE)

Ans:  True

Question. Excess of Income over Expenditure in Income and Expenditure account prepared by a NPO is termed as Deficit.( TRUE/FALSE)

Ans:  False

Question. Building Fund, Library Fund et(c) is based on____________Accounting.

Ans:  Fund Based

Question. Amount paid by the members to keep their membership alive is termed as__________.

Ans:  Subscription

Question. Amount received as donation by NPO under will of a deceased person is termed as______.

Ans:  Legacy

Question. Life membership fees received by a NPO is a________.

Ans:  Capital Receipt

Question. Token payment made to a person, who voluntarily undertakes a service which would normally command a fee is_______

 Ans:  Honororium

Question. Receipts and Payments Account is based on__________Basis of accounting.

Ans:  Cash Basis

Question. Which of the following is an example of not-profit-organisation:

(a) Public hospitals 

(b) Corporations 

(c) Audit firm 

(d) Insurance companies.

Ans:  A

Question. <100000 received as annual subscription. Out of this <20000 is of pervious year whereas <10000 is receivable at the end of the current year. Amount of subscription that will be show in income and expenditure account will be

(a) <1, 00,000 

(b) <90, 000 

(c) <1, 20,000 

(d) <80, 000

Ans:  B

Question. Surplus of Not-for –Profit organisations

(a) Distributed among the members

(b) Is not distributed among the members

(c) May be or May not be distributed among the members

(d) Is debited to General fund.

Ans: B

Question. If Life Membership fees of <5000 wrongly treated as revenue receipt then effect of this error on surplus and closing balance of capital fund will be

(a) Capital fund increased and surplus increased by<5000

(b) Capita fund decreased and surplus increased by<5000

(c) No effect on capital fund but surplus increased by<5000

(d) Capital fund decreased by <5000 but no effect on surplus.

Ans:  C

Question. Income and Expenditure Account is based on

(a) Cash Basis of Accounting.

(b) Accrual Basis of Accounting.

(c) Mixed Basis of Accounting.

(d) Management Accounting.

Ans: B

Question. Delhi cricket club gives the following information. Opening Stadium Fund is <10, 00,000. Donation for Stadium fund received during the year Rs.500000. Income from Stadium Fund Investment Rs.100000. Amount spent during the year on construction of stadium is Rs.600000. Identify which of the following statement is correct in respect to preparation of Balance sheet.

(a) Rs.600000 shown on the asset side of the Balance sheet.

(b) Rs.600000 shown on the asset side of the Balance sheet Also Rs.600000 is transferred to the credit of Income and Expenditure account,

(c) Rs.600000 shown on the asset side of the Balance sheet Also Rs.600000 is transferred from Stadium fund to General fund in the Balance sheet.

(d) Rs.600000 is shown as an expense in the Income and Expenditure account and Rs.600000 is transferred to the credit pf Income and Expenditure account from Stadium fund.

Ans: C

Question. Subscriptions received during the year Rs.5,000,amount received in advance for the next year is Rs.300. Amount outstanding for current year was Rs.400. The amount to be credited to the Income and Expenditure account is

(a) 4,000

(b) 5100 

(c) 4200 

(d) 4600

Ans: B

Question. Subscription received during the year Rs.50, 000. ;Subscriptions Outstanding at the end of the year` 8,000; Subscription outstanding at the beginning of the year ` 6,000. Net Income from subscription will be 

(a) 48,000 

(b) 64,000 

(c) 52,000 

(d) 36,000

(a) Debited to Income and Expenditure account

(b) Credited to Tournament Fund

(c) Shown on the Asset side of Balance sheet

(d) Credited to Income and Expenditure Account

Ans:  A

Question. Which of the following is prepared to find out the income of a trading concern?

(a) Receipts and Payments a/c

(b) Income and Expenditure a/c

(c) Profit and Loss a/c

(d) Balance Sheet.

Ans: C

Question. If Income is Rs.16,000 and deficit debited to Capital Fund is Rs.4,300 then Expenditure is: 

(a) 16,000 

(b) 4,300 

(c) 20,300 

(d) None of these

Ans: C

Question. The Main purpose of Not-for- Profit organisation is :

(a) To earn profit 

(b) to serve the society 

(c) To improve the economy 

(d) None of the above.

Ans: B

Question. If 10% Interest on Investment appearing in the Receipts side is Rs.7000, then the value of investment will be:

(a) Rs.1,00,000 

(b) 70,000 

(c) 56,000 

(d) 49,000

Ans: B

Question. Entrance fees received amounted to Rs.50,000. In this 25% is to be capitalized. Mention the amount to be shown in income side of Income and Expenditure account:

(a) 12,500 

(b)13,200 

(c) 50,000 

(d) 37,500

Ans:  D

Question. Subscription outstanding for the year 2018-19 is Rs.2500. Subscription outstanding for the year 2017-18 was Rs.5000 out of which Rs.3000 were received during the year 2018-19. The outstanding subscription to be shown in the Income and expenditure for current year 2018-19 is :

(a) Rs. 500 

(b) Rs.1000 

(c) Rs.2500 

(d) Rs.3000

Ans:  A

Question. Furniture (Book value) Rs.5,000 were sold for Rs. 4,500. New Furniture worth Rs.10,000 were purchased during the year. The amount which is to be debited to Income and Expenditure account is :

(a) Profit on sale Rs.500 

(b) Loss on sale Rs.500 

(c) Sale of furniture Rs.4500 

(d) Purchase of Rs.10000

Ans: B

Question. Stock of medicines on 1.4.18 were Rs.5000. Medicines purchased during the year is Rs.5000. Medicines sold during the year is Rs.2500. Closing stock of medicines are Rs.3000. Stock of medicines used during the year 2019 is:

(a) Rs.7000 

(b) Rs.2500 

(c) Rs.5000 

(d) Rs.10000

Ans:  A

Question. Receipts and payments account makes no difference between:

(a) Capital Receipts and Capital payments 

(b) Revenue receipts and revenue payments

(c) Current year and previous year 

(d) All the above.

Ans: D

Question. The account which shows classified summary of transactions of a Cash Book’ in a Not-for-Profit Organisation is called: