CBSE Class 12 Accountancy Accounting for Not for Profit Organisation Advanced Questions

Question: Which of the following is an example of not-profit-organisation:
a) Public hospitals
b) Corporations
c) Audit firm
d) Insurance companies.

Answer: a

Question: Which of the following is not a capital receipt?
a) Donations for tournament
b) Donations for building fund
c) Life membership fee
d) Entrance fees

Answer: d

Question: Subscription received in advance during the current year is
a) an income.
b) an asset.
c) a liability.
d) None of these.

Answer: c

Question:Receipts and Payments Account is a
a) Real Account.
b) Nominal Account.
c) Personal Account.
d) Revenue Account

Answer: a

Question: Out of the following items, which is shown in the ‘Receipts and Payments A/c’ of a not for profit organisation?
a) Subscription received in advance
b) Last year subscription received
c) Current year subscription received
d) All of the above

Answer: d

Question: Life membership fee received by a club is:
a) Revenue Receipt
b) Capital Receipt
c) a) and b) both
d) None of these

Answer: b

Question: Credit side balance in Income & Expenditure Account reveals :
a) Excess of cash receipts overpayments
b) Excess of cash payments over receipts
c) Excess of expenditure over income
d) Excess of income over expenditure

Answer: d

Question: Subscription received during the year were:
Rs. 800 for the current year.
Rs. 100 for the previous year
Rs. 100 for the next year.
In the receipts and payments account the receipts from subscriptions would appear at ____________.
a) Rs. 700
b) Rs. 800
c) Rs. 900
d) Rs. 1,000

Answer: d

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

Answer: d

Question: Specific Donation received by NPO is shown in the
a) Credit side of Income and Expenditure Account,
b) Debit side of Income and Expenditure Account
c) Liabilities side of Balance Sheet.
d) As is decided by the management.

Answer: d

Question: Income and Expenditure Account is prepared on
a) Cash Basis.
b) Accrual Basis.
c) Both a) and b).
d) Sales Basis,

Answer: d

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

Answer: d

Question: A not for profit organisation includes:
a) Religious Organisations
b) Trade unions
c) Clubs
d) Educational institutions
e) All of the above

Answer: d

Question: Most transaction in non-trading concerns are:
a) Cash
b) Credit
c) Both a) and b)
d) None of these

Answer: d

Question: Subscription received in advance during the current year is :
a) an income
b) an asset
c) a liability
d) none of these

Answer: d

Question: If a General Donation of huge amount is received by a school, that donation is treated as :
a) Revenue Receipt (Income)
b) Capital Receipt (Liability)
c) Assets
d) Earned Income

Answer: d

Question: Which of the following statements is not true for Receipts and Payments Account?
a) It is a summary of the Cash Book.
b) It records receipts and payments of revenue nature only.
c) The receipts and payments may relate to current, preceding, or succeeding accounting periods.
d) Depreciation is not shown in it.

Answer: d

Question: Capital fUnd is calculated:
a) Income-Expenditure
b) Assets Liabilities
c) Capital + Liabilities
d) None of these

Answer: d

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: Furniture as on 31st March, 2019 Rs. 4,40,000. Furniture (having Book value as on 1st April, 2018 of Rs. 40,000) sold at a loss of 20% on 31st December, 2018. Furniture is depreciated @ 10% p.a. Furniture costing Rs. 3,00,000 was also purchased on 1st October, 2018. Calculate Loss on sale of furniture.
a) Rs. 9,400
b) Rs. 6,400
c) Rs. 8,000
d) Rs. 7,400

Answer: d

Question: Subscription received in cash during the year amounted to Rs.5,00,000; subscription outstanding at the end of previous year was Rs.20,000 and outstanding at the end of current year was Rs.25,000. Subscription received in advance for next year was Rs. 8,000 and received in advance during previous year was Rs.7,000. The amount credited to Income & Expenditure Account will be :
a) Rs.5,04,000
b) Rs.5,06,000
c) Rs.4,96,000
d) Rs.4,94,000

Answer: a

Question: The excess of assets over liabilities in non-trading concerns is termed as:
a) Capital Fund
b) Capital
c) Profit
d) Net Profit

Answer: a

Question: The amount of ‘Entrance Fees’ received by a Non-profit organisation (if it is received regularly) is shown in which of the following?
a) Liability side of Balance Sheet
b) Assets side of Balance Sheet
c) Debit side of Income and Expenditure Account
d) Credit side of Income and Expenditure Account

Answer: d

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.

Answer: d

Question: Identify capital receipt from the following:
a) Life Membership Fees
b) Rent Receipt
c) Entrance fees
d) Sports expenses.

Answer: a

Question: Subscription received by an organisation is:
a) Capital Receipt
b) Revenue Receipt
c) Both a) and b)
d) None of the above

Answer: b

Question: Which of the following is directly added to the capital fund on the liabilities side of the Balance Sheet?
a) Life membership fees
b) Legacies
c) Entrance Fees
d) All of these

Answer: a

Question: Subscription received by a school for organising annual function is treated as:
a) Capital receipt (i.e. Liability)
b) Revenue receipt (i.e. Income)
c) Assets.
d) Earned income.

Answer: b

Question: Which of the following is not a revenue receipt?
a) Donations for Tournament
b) Government Grants
c) Subscriptions
d) Entrance Fees

Answer: a

Question: Receipts and Payments Account is prepared on
a) Cash Basis.
b) Time Basis.
c) Accrual Basis.
d) Sales Basis.

Answer: a

Question: Salaries paid during the year ended 31st March, 2020 is Rs. 36,000. Salaries paid in advance at the end of previous year were Rs. 54,000. The amount of Salaries to be debited to income and Expenditure Account for the year ended 31st March, 2020 will be
a) Rs. 54,000.
b) Rs. 36,000.
c) Rs. 90,000.
d) Rs. 18,000.

Answer: c

Question: The opening balance of Prize Fund was ₹32,800. During the year, donations reoeived towards this fund amounted to ₹15,400; amount spent on prizes was 712,300 and interest received on prize fund investment was ₹4,000. The closing balance of Prize Fund will be :
a) ₹56,500
b) ₹64,500
c) ₹39,900
d) ₹31,900

Answer: c

Question: The opening balance of Prize Fund was Rs.32,800. During the year, donations received towards this fund amounted to Rs. 15,400; amount spent on prizes was Rs. 12,300 and interest received on prize fund investment was Rs.4,000. The closing balance of Prize Fund will be :
a) Rs. 56,500
b) Rs.64,500
c) Rs.39,900
d) Rs. 31,900

Answer: c

Question: Life Membership Fees received by a 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: Income and Expenditure Account generally indicates:
a) Surplus/Deficit
b) Cash Balance
c) Capital Fund
d) Net Profit/Loss

Answer: a

Question: An Income and Expenditure Account reveals:
a) Cash position.
b) Surplus or Deficit.
c) Capital Fund.
d) None of the above.

Answer: b

Question: Donation received for a special purpose:
a) Should be credited to Income and Expenditure Account
b) Should be credited to separate account and shown in the Balance Sheet
c) Should be shown on the assets side
d) Should not be recorded at all.

Answer: b

Question: Income and Expenditure Account records transactions of:
a) Revenue nature only
b) Capital nature only
c) Both revenue and capital nature
d) Income of only revenue nature and expenditure of revenue and capital nature.

Answer: a