CBSE Class 11 Accountancy Financial Statements Of Not For Profit Organizations Worksheet

Objective Questions

Question. Balance sheet is prepared to know
(a) financial performance.
(b) financial position.
(c) liabilities position.
(d) assets position. 

Answer :  B

Question. Debts that were earlier written off, if recovered, are transferred to the credit side of
(a) Debtors Account.
(b) Trading Account.
(c) Profit and Loss Account.
(d) Provision for Doubtful Debts Account. 

Answer :  C 

Question. Current liabilities are such obligations which are to be satisfied
(a) within one year.
(b) within two years.
(c) within three years.
(d) within four years. 

Answer :  A 

Question. Goods destroyed by fire costing Rs. 50,000 and insurance company admitted 60% claim. The adjustment will be entered in
(a) Trading Account.
(b) Profit and Loss Account.
(c) Balance Sheet.
(d) Trading Account, Profit and Loss Account and Balance Sheet. 

Answer :  D

Question. Depreciation for current year in the Trial Balance is shown in
(a) Debit side of Profit and Loss Account and it is deducted from that particular asset in the Balance Sheet.
(b) Assets side of Balance Sheet as a deduction from the concerned Asset.
(c) Debit side of Profit and Loss Account.
(d) Debit side of Trading Account. 

Answer :  C

Question.  Computers owned by a firm are classified as
(a) Tangible Assets.
(b) Current Assets.
(c) Liquid Assets.
(d) Intangible Assets. 

Answer :  A 

Question. Trading Account is prepared to know
(a) Gross Profit.
(6) Net Profit.
(c) Balance of Capital.
(d) Financial Position. 

Answer :  A

Question. Profit and Loss Account is prepared to know
(a) Gross Profit or Gross Loss.
(6) Net Profit or Net Loss.
(c) Operating Profit or Operating Loss,
(d) Financial Position. 

Answer :  B 

Question. Salaries and Wages Account is shown in
(a) Trading Account.
(b) Profit and Loss Account.
(c) Balance Sheet.
(d) Trading Account and Balance Sheet. 

Answer :  B

Question.  Closing Stock is valued at
(a) Cost.
(b) Net Realisable Value (Market Value).
(c) Cost or Net Realisable Value (Market Value), whichever is more.
(d) Cost or Net Realisable Value, whichever is less. 

Answer :  D 

Question. Revenue Expenditure is transferred to
(a) Profit and Loss Account.
(b) Trading and Profit and Loss Account.
(c) Balance Sheet.
(d) Purchases Account. 

Answer :  B

Question. Outstanding Salaries is shown as
(a) an asset in the Balance Sheet.
(b) a liability in the Balance Sheet.
(c) adjusted in Profit and Loss Account.
(d) both (b) and (c). 

Answer :  D

Question. Large advertisement expenditure to introduce a new product is
(a) Capital Expenditure.
(b) Revenue Expenditure.
(c) Deferred Revenue Expenditure.
(d) None of these. 

Answer :  C

Question. Purchase of machinery for production is
(a) Revenue Expenditure.
(b) Capital Expenditure.
(c) Deferred Revenue Expenditure.
(d) None of these. 

Answer :  B

Question. Which of the following is not the part of Financial Statements?
(a) Trial Balance
(b) Trading Account
(c) Profit and Loss Account
(d) Balance Sheet 

Answer :  A

Very Short Answer Type Questions

Question. The current asset does not include closing stock
Answer: False

Question. Goodwill is
1. Current Asset
2. Tangible Asset
3. Intangible Asset
4. Fictitious Asset
Answer: Intangible Asset

Question. What are the financial statements?
Answer: Financial statement is a statement which presents financial profit data and financial status of a company.

Question. Which is a trading account?
Answer: A trading account is a financial statement that shows the result of the purchase and selling of goods and services of an accounting year.

Question. State the formula to calculate operating profit from net profit.
Answer: Operating Profit = Net Profit – Non-Operating Income + Non-Operating Expenses

Question. Define Balance Sheet.
Answer: A Balance Sheet is a statement which shows the liabilities, assets and shareholder’s equity of the enterprise. This statement comprises of 2 major groups in which it is categorized, namely, assets, which is classified into Non – Current Assets and Current assets. Current Assets are such assets which are easily transformed into cash. On the other hand, the Non – Current Assets are such types of assets with the assistance of which the enterprise operates the enterprise.

Question. Define Net profit
Answer: Net profit refers to the surplus of all the revenues overall expenses and losses of a company.

Question. The purpose of preparing a final account is to determine
1. Profit and Loss
2. Capital
3. The value of Assets
4. Profit and Loss and Financial position
Answer: Profit and Loss and Financial position

Q1) What are not profit organizations? How are they different from profit seeking organizations?

Q2) Explain the concept of Fund Based Accounting.

Q3) What is a Receipt and Payment A/c? Enumerate its features.

Q4) Why is Income and Expenditure A/c prepared? State its features.

Q5) Define and explain the accounting treatment of the following terms:

   a) Subscriptions

   b) Life membership subscription

   c) Entrance fees

   d) Legacy

Q6) Distinguish between:

   a) Receipts and Payments A/c and Income and Expenditure A/c

   b) Income and Expenditure A/c and Profit and Loss A/c.

  c) Receipts and Payments A/c and Cash book.

Q7) How will you deal with the given information while preparing the final accounts for the year 2002:

     Subscription received during 2002: for 2001- Rs. 5,000; for 2002- Rs. 30,000; for 2003- Rs. 6,000

    Subscription received in advance as at 31.12.2001- Rs. 6,000

    Subscription outstanding as at 31.12.2001- Rs. 6,000

    Subscription outstanding for the year 2002- Rs. 4,000

Q8) Calculate the amount of subscriptions to be credited to the Income and Expenditure A/c for the year ending 31st March,2003:

Subscription in arrears on 31.3.2002- Rs. 500

Subscription received in advance on 31.3.2002- Rs.1,100

Total subscription received during 2002-03 (including Rs. 400 for 2001-02, Rs. 900 for 2003-04 and Rs. 300 For 2004-05)- Rs. 35,400 Subscription outstanding for 2002-03- Rs. 400

Students must free download and practice these worksheets to gain more marks in exams. CBSE Class 11 Accountancy Worksheet - Financial Statements Of Not For-Profit Organisations