CBSE Class 12 Accountancy Not For Profit Organisation Worksheet Set A

Question: How much amount will be shown in Income and Expenditure Account in the following case?

Payment made against Stationery during the year Rs 66,000

 

 

One Mark Questions

Question. The main object of non-profit organization is —
(a) To earn the Profit
(b) To Serve the Society
(c) To Prepare Profit &Loss A/c
(d) All the above
Answer: (b)

Question. Subscription received by an organization is—
(a) Capital Receipt
(b) Revenue Receipt
(c) Both ‘A’and ‘B’
(d) None of the above
Answer: (b)

Question. Entrance fees received by a Club is treated as—
(a) Revenue Receipt
(b) Capital Receipt
(c) Revenue Expenditure
(d) None of these
Answer: (a)

Question. Receipts and Payments A/c is a summary of—
(a) All Capital Receipts and Payments
(b) All Revenue Receipts and Payments
(c) All Revenue and Capital Receipts and Payments
(d) None of the above
Answer: (c)

Question. Subscription received during the year \( \text{Rs. } 50,000 \); Subscriptions outstanding at the end of the year \( \text{Rs. } 8,000 \); Subscription outstanding at the beginning of the year \( \text{Rs. } 6,000 \). Net Income from subscription will be—
(a) \( \text{Rs. } 48,000 \)
(b) \( \text{Rs. } 64,000 \)
(c) \( \text{Rs. } 52,000 \)
(d) \( \text{Rs. } 36,000 \)
Answer: (c)

Question. Subscription received during the year \( \text{Rs. } 1,80,000 \); Subscriptions outstanding at the end of the year \( \text{Rs. } 20,000 \); Subscriptions received in advance at the end of the year \( \text{Rs. } 10,000 \). The amount of subscription to be credited to Income and Expenditure Account will be —
(a) \( \text{Rs. } 2,10,000 \)
(b) \( \text{Rs. } 1,90,000 \)
(c) \( \text{Rs. } 1,70,000 \)
(d) \( \text{Rs. } 2,00,000 \)
Answer: (b)

Question. In case specific fund is maintained, the expenses exceeding the amount of the funds, should be recorded on—
(a) Liabilities side of the Balance Sheet
(b) Debit side of the Income and Expenditure Account
(c) Credit side of the Income and Expenditure Account
(d) Assets side of the Balance Sheet
Answer: (b)

Question. All receipts from sale of consumable items are treated as—
(a) Capital Receipts
(b) Revenue Receipts
(c) Both ‘A’and‘B’
(d) None of these
Answer: (b)

Question. Subscriptions received in cash during the year \( \text{Rs. } 5,000 \), amount Received in advance for the next year is \( \text{Rs. } 300 \). Amount outstanding for current year was \( \text{Rs. } 400 \). The amount to be credited to the Income and Expenditure Account is—
(a) \( \text{Rs. } 4,000 \)
(b) \( \text{Rs. } 5,100 \)
(c) \( \text{Rs. } 4,200 \)
(d) \( \text{Rs. } 4,600 \)
Answer: (b)

Question. If income is \( \text{Rs. } 16,000 \) and ‘deficit’ debited to capital fund is \( \text{Rs. } 4,300 \), then expenditure
(a) \( \text{Rs. } 16,000 \)
(b) \( \text{Rs. } 4,300 \)
(c) \( \text{Rs. } 20,300 \)
(d) None of these
Answer: (c)

Question. Balance of Income and Expenditure Account shows—
(a) Cash in hand
(b) Capital Fund
(c) Net Profit
(d) Excess of Income over Expenditure or vice-versa
Answer: (d)

Question. Property received as a result of the will of the deceased person is Called
(a) Legacy
(b) Honorarium
(c) Donation
(d) Subscription
Answer: (a)

Question. Legacies should be treated as —
(a) A Liability
(b) A Revenue Receipts
(c) An Income
(d) None of these
Answer: (a)

Question. Life membership fees received by Club is shown in—
(a) Income and Expenditure A/c
(b) Balance Sheet
(c) Receipts and Payments A/c
(d) None of these
Answer: (b)

Question. For non-trading organisation honorarium is—
(a) A Capital Expenditure
(b) A Revenue Expenditure
(c) An Income
(d) None of these
Answer: (b)

Question. Receipts & Payments A/c is a—
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) None of these
Answer: (b)

Question. Income & Expenditure A/c is a—
(a) Personal A/c
(b) Real A/c
(c) Nominal A/c
(d) None of these
Answer: (c)

Question. Which of the following is not a not-for-profit organisation—
(a) College
(b) Sports Club
(c) Maruti Udyog
(d) Hospital
Answer: (c)

Question. Income and Expenditure Account is prepared—
(a) By Business Organisation
(b) By Industrial Organisation
(c) By Not-for-profit Organisation
(d) By all Organisations
Answer: (c)

Question. Receipts and Payments Account usually indicates—
(a) Surplus
(b) Capital Fund
(c) Debit Balance
(d) Credit Balance
Answer: (c)

Question. Income and Expenditure Account generally indicates—
(a) Surplus/Deficit
(b) Cash Balance
(c) Capital Fund
(d) Net Profit/Loss
Answer: (a)

True/False

Question. Income is shown on the debit side of Income and expenditure Account.
Answer: False

Question. Income and Expenditure Account is a real account.
Answer: False

Question. Only revenue items are recorded in the Income and Expenditure Account.
Answer: True

Question. Expenses incurred on annual whitewashing of building is revenue expenditure.
Answer: True

Question. Scholarships granted to students out of funds provided by Government will be Expenditure over incomes.
Answer: False

Fill in the Blanks

Question. The regular source of income of income of a club is ………………..
Answer: Subscriptions

Question. The sale of old newspapers is of………………….. nature.
Answer: Revenue

Question. Not for Profit Organisation is a …………………….Legal entity.
Answer: Separate

Question. Income and Expenditure Account shows the amount of subscription for the …………………. Irrespective of the fact whether it is received or not.
Answer: Current accounting period

Question. An NPO does not have ………………… like proprietorship, partnership and joint stock company.
Answer: Capital Ownership

3/4 MARKS QUESTIONS

Question. Calculate the amount of subscription to be credited to Income & Expenditure a/c for the yr. 2018-2019.
Subscription received during 2018-2019: \( \text{Rs. } 50,000 \)
Subscription outstanding on 31-3-2019: \( \text{Rs. } 8,000 \)
Subscription outstanding on 01-04-2018: \( \text{Rs. } 6,000 \)
Answer: \( \text{Subscription to be credited} = 50,000 + 8,000 - 6,000 = \text{Rs. } 52,000 \)

Question. Ascertain the amount of salary chargeable to Income & Expenditure A/c for 2019-2020
Total salaries paid in 2019-2020: \( \text{Rs. } 10,200 \)
Prepaid salaries on 31-3-2019: \( \text{Rs. } 1,200 \)
Prepaid salaries on 31-3-2020: \( \text{Rs. } 600 \)
Outstanding salaries on 31-3-2019: \( \text{Rs. } 900 \)
Outstanding salaries on 31-3-2020: \( \text{Rs. } 750 \)
Answer: \( \text{Salary chargeable} = 10,200 - 600 + 1,200 + 750 - 900 = \text{Rs. } 10,650 \)

Question. How would you deal with the following items in the Balance sheet of a NPO?
1. Donations received for Auditorium construction (Expected total cost \( \text{Rs. } 40,00,000 \)): \( \text{Rs. } 25,00,000 \)
2. Expenditure on construction of Auditorium: \( \text{Rs. } 21,00,000 \)
3. Receipts from Charity show: \( \text{Rs. } 10,000 \)
4. Charity show expenses: \( \text{Rs. } 11,000 \)
5. Prize Fund: \( \text{Rs. } 25,000 \)
6. 6% Prize fund Investment: \( \text{Rs. } 25,000 \)
7. Donation for Prize Fund: \( \text{Rs. } 5,000 \)
8. Prizes awarded: \( \text{Rs. } 6,000 \)
Answer: (1 & 2) Auditorium Fund will show \( \text{Rs. } 4,00,000 \) (\( 25,00,000 - 21,00,000 \)) on Liabilities side and \( \text{Rs. } 21,00,000 \) will be transferred to Capital Fund. Work-in-Progress shown on Assets side for \( \text{Rs. } 21,00,000 \). (3 & 4) Deficit of \( \text{Rs. } 1,000 \) on I&E debit side. (5, 6, 7 & 8) Prize fund in Balance Sheet: \( 25,000 + 5,000 - 6,000 = \text{Rs. } 24,000 \) (Liabilities side), and Prize Fund Investment \( \text{Rs. } 25,000 \) (Assets side).

Question. Stock of Cricket equipments on 1.1.2019: \( \text{Rs. } 1,000 \)
Stock of Cricket equipments on 31.12.2019: \( \text{Rs. } 1,500 \)
Cricket equipments purchased during the year: \( \text{Rs. } 4,150 \)
Answer: \( \text{Amount to be debited to I&E A/c} = 1,000 + 4,150 - 1,500 = \text{Rs. } 3,650 \)

Question. Calculate the sports material to be debited to Income & Expenditure A/c for the year ended 31-3-2007 on the basis of the following information:
Stock of sports material (1.4.2019): \( \text{Rs. } 7,500 \)
Stock of sports material (31.3.2020): \( \text{Rs. } 6,400 \)
Creditors for sports material (1.4.2019): \( \text{Rs. } 2,000 \)
Creditors for sports material (31.3.2020): \( \text{Rs. } 2,600 \)
Amount paid for sports material during the year was \( \text{Rs. } 19,000 \)
Answer: \( \text{Purchases} = 19,000 + 2,600 - 2,000 = 19,600 \).
\( \text{Consumption} = 7,500 + 19,600 - 6,400 = \text{Rs. } 20,700 \)

Question. On the basis of the information given below, calculate the amount of stationery debited to income and Expenditure account of Raman Health Club for the year ended 31st March 2020:

Particulars	1st April 2019 Rs.	31st March 2020 Rs.
Stock of Stationery	80,000	60,000
Creditors for Stationery	90,000	1,10,000

Stationery purchased during the year ended 31st March 2020: \( \text{Rs. } 4,70,000 \)
Outstanding Subscription or Subscription Receivable (1.4.2019): \( \text{Rs. } 92,000 \); (31.3.2020): \( \text{Rs. } 1,26,000 \)
Advance Subscriptions (1.4.2019): \( \text{Rs. } 60,000 \); (31.3.2020): \( \text{Rs. } 80,000 \)
Subscription received during the year ended 31st March 2020: \( \text{Rs. } 6,40,000 \)
Answer: \( \text{Stationery Consumed} = \text{Opening Stock} + \text{Purchases} - \text{Closing Stock} = 80,000 + 4,70,000 - 60,000 = \text{Rs. } 4,90,000 \).
\( \text{Subscription Income} = 6,40,000 + 1,26,000 - 92,000 + 60,000 - 80,000 = \text{Rs. } 6,54,000 \).

Question. Calculate the amount of subscriptions outstanding from the following information for the year ending 2018-19:
A club has 375 members each paying an annual subscription of \( \text{Rs. } 1,000 \). Subscriptions outstanding on 31st March 2018: \( 60,000 \). Subscriptions received in advance on 31st March 2019: \( 45,000 \). Subscription received in advance on 31st March 2018: \( 18,000 \). The Receipt and Payment Account showed a sum of \( \text{Rs. } 3,97,500 \) received as subscriptions.
Answer: \( \text{Total Subscription Due for year} = 375 \times 1,000 = 3,75,000 \).
\( 3,75,000 = 3,97,500 + \text{O/s End} - 60,000 - 45,000 + 18,000 \).
\( 3,75,000 = 3,10,500 + \text{O/s End} \)
\( \text{Subscription Outstanding on 31st March 2019} = \text{Rs. } 64,500 \).

Please click on below link to download CBSE Class 12 Accountancy Not For Profit Organisation Worksheet Set A