Class 12
DK Goel
Chapter -1
Financial Statements of Not-for-Profit Organisations
Multiple Choice Questions
Select the Best Alternate and tally your answer with the Answers given
at the end of the book :
1. Receipts and Payments Account generally shows :
(A) A Debit balance
(B) A Credit balance
(C) Surplus or Deficit
(D) Capital Fund
2. 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.
3. Income and Expenditure Account reveals :
(A) Surplus or Deficiency
(B) Cash in Hand
(C) Net Profit
(D) Capital Account
4. The amount of 'Subscription received from members' by a Non-profit
organisation is shown in which of the following?
(A) Debit side of Income and Expenditure Account
(B) Credit side of Income and Expenditure Account
(C) Liability side of Balance Sheet
(D) Assets side of Balance Sheet
5. 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.
6. 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) Asset
(D) Earned Income
7. 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
8. Out of following items, which one is shown in the Receipts and Payments
Account?
(A) Outstanding Salary
(B) Depreciation
(C) Life Membership Fees
(D) Accrued Subscription
9. Not-for-profit organisations prepare :
(A) Trading Account
(B) Trading & Profit and Loss Account
(C) Income and Expenditure Account
(D) All of the above
10. The Receipts and Payments Account is a summary of:
(A) Debit and Credit balance of Ledger Accounts
(B) Cash Receipts and Payments
(C) Expenses and Incomes
(D) Assets and Liabilities
11. Receipts and Payments Account is a:
(A) Personal Account
(B) Real Account
(C) Nominal Account
(D) Real and Nominal Account, both
12. Income and Expenditure Account is a :
(A) Personal Account
(B) Real Account
(C) Nominal Account
(D) Real and Nominal Account, both
13. Credit side balance in Income & Expenditure Account reveals :
(A) Excess of cash receipts over payments
(B) Excess of cash payments over receipts
(C) Excess of expenditure over income
(D) Excess of income over expenditure
14. Source of income for a not-for-profit organisation is :
(A) Subscription from Members
(B) Donation
(C) Entrance Fees
(D) All of the above
15, Which of the following represent capital receipt :
(A) Life Membership Subscription
(B) Donation
(C) Subscription
(D) Interest on Investments
16. Which of the following is a revenue receipt for a not-for-profit organisation?
(A) Endowment Fund
(B) Government Grants
(C) Life Membership Fees
(D) Donation for Pavilion
(C.B.S.E. 2020, Rajasthan)
17. Which of the following is not a revenue receipt?
(A) Donations for Tournament
(B) Government Grants
(C) Subscriptions
(D) Entrance Fees
(C.B.S.E. 2020, Kolkata), Lucknow
18. Which of the following is not a revenue receipt?
(A) Admission Fees
(B) Government Grants
(C) Locker Rent
(D) Legacies for Specific Purpose
(C.B.S.E. 2020, Kolkata, Lucknow)
19. Amount received from sale of grass by a club should be treated as :
(A) Capital Receipt
(B) Revenue Receipt
(C) Asset
(D) Earned Income
20. The amount received for sale of old sports materials by a Non-profit
organisation is shown in which of the following?
(A) Debit side of Income and Expenditure Account
(B) Liability side of Balance Sheet
(C) Credit side of Income and Expenditure Account
(D) Assets side of Balance Sheet
21. If there is.a ‘Match Fund', then match expenses and incomes are transferred
to:
(A) Income and Expenditure A/C
(B) Assets side of Balance Sheet
(C) Liabilities side of Balance Sheet
(D) Both Income and Expenditure A/c and to Balance Sheet
22. Subscription received in advance during the current year is :
(A) an income
(B) an asset
(C) a liability
(D) none of these
23. Subscription received in cash during the year amounted to ₹40,000;
subscription outstanding at the end of previous year was ₹1,500 and
outstanding at the end of current year was, ₹2,000. Subscription received
in advance for next year was ₹800. The amount credited to Income & Expenditure
Account will be:
(A) ₹38,700
(B) ₹39,700
(C) ₹40,300
(D) ₹41,300
24. Subscription received in cash during the year amounted to ₹5,00,000;
subscription outstanding at the end of previous year was ₹20,000 and
outstanding at the end of current year was ₹25,000. Subscription received
in advance for next year was ₹8,000 and received in advance during
previous year was ₹7,000. The amount credited to Income & Expenditure
Account will be:
(A) ₹5,04,000
(B) ₹5,06,000
(C) ₹4,96,000
(D) ₹4,94,000
25. Subscription received in cash during the year amounted to ₹60,000;
subscription received in advance for next year was ₹3,000 and received
in advance during previous year was ₹2,000. Subscription in arrear at the
end of current year was ₹5,400. The amount credited to Income & Expenditure
Account will be :
(A) ₹53,600
(B) ₹66,400
(C) ₹55,600
(D) ₹64,400
26. Subscription received in cash during the year amounted to ₹3,00,000;
subscription received in advance for next year was ₹10,000 and received
in advance during previous year was ₹8,000. Subscription in arrear at the
end of previous year was ₹18,000 and subscription in arrear at the end of
current year was ₹12,000. The amount credited to Income & Expenditure
Account will be :
(A) ₹2,96,000
(B) ₹3,04,000
(C) ₹2,92,000
(D) ₹3,08,000
27. What amount will be credited to the Income and Expenditure Account
for the year ending 31st March, 2010 on the basis of the following information? :
31-3-2009 31-3-2010
Outstanding Subscription ₹10,000 ₹25,000
Advance Subscription ₹3,000 ₹2,000
Subscriptions received during the year 2009-10 were ₹4,00,000.
(A) ₹3,84,000
(B) ₹4,16,000
(C) ₹3,86,000
(D) ₹4,14,000
28. There are 200 members, each paying an annual subscription of ₹1,000;
subscription received during the year ₹1,95,000; subscriptions received in
advance at the beginning of the year ₹3,000 and at the end of the year ₹2,000.
Amount shown in Income & Expenditure Account will be :
(A) ₹2,00,000
(B) ₹1,96,000
(C) ₹1,94,000
(D) ₹2,01,00029. The opening balance of Prize Fund was ₹32,800. During the year,
donations received towards this fund amounted to ₹15,400; amount
spent on prizes was ₹12,300 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
30. Salary paid in cash during the current year was ₹80,000; Outstanding
salary at the end was ₹4,000; Salary paid in advance last year pertaining to
the current year was ₹53,200; paid in advance during the current year for
next year was ₹5,000. The amount debited to Income and Expenditure Account will be:
(A) ₹85,800
(B) ₹77,800
(C) ₹82,200
(D) ₹74,200
31. Salary paid in cash during the current year was ₹30,000; Outstanding
salary at the end of previous year was ₹2,000 and outstanding salary at
the end of current year was ₹3,000. Salary paid in advance during the
current year for next year was ₹2,600. The amount debited to Income and
Expenditure Account will be :
(A) ₹33,600
(B) ₹26,400
(C) ₹31,600
(D) ₹28,400
32. Salary paid for the year ended 31st March, 2010 amounted to ₹75,000.
How much amount will be recorded in the Income and Expenditure Account
in the following case?
31-3-2009 31-3-2010
Outstanding Salary ₹6,000 ₹6,500
Prepaid Salary ₹1,200 ₹1,000
(A) ₹75,700
(B) ₹74,300
(C) ₹75,300
(D) ₹74,700
33. How much amount will be shown in Income and Expenditure Account in
the following case?
1-4-2009 31-3-2010
Creditors for Stationery ₹8,000 ₹6,000
Stock of Stationery ₹3,000 ₹3,200
During 2009-10 payment made for Stationery was 60,000.
(A) ₹57,800
(B) ₹62,200
(C) ₹61,800
(D) ₹58,200
34. How much amount will be shown in Income and Expenditure Account in
the following case?
31-3-2009 31-3-2010
Unpaid for Medicines ₹10,000 ₹12,000
Stock of Medicines ₹8,000 ₹13,000
(A) ₹2,53,000
(B) ₹2,47,000
(C) ₹2,57,000
(D) ₹2,43,000
35. The following information has been extracted from the financial statements
of a not-for-profit-organization for the year ended 31st March, 2019:
Particulars ₹
Opening Balance of Match Fund 5,00,000
Sale of Match tickets 3,75,000
Donation for Match Fund received during the year 1,24,000
Match expenses 10,00,000
Which of the following statements is correct for the presentation of the above items in
the financial statements of the not-for-profit organization?
(A) Negative Balance of Match Fund ₹1,000 will be shown on the liabilities side
of the Balance sheet as at 31st March, 2019.
(B) Opening Balance of Match Fund ₹5,00,000 will be shown on the liabilities
side of Balance Sheet as at 1-4-2018.
(C) Negative balance of Match Fund, ₹1,000 will be shown on the expenditure
side of the Income and Expenditure Account for the year ended 31-3-2019.
(D) Both (B) and (C).
(C.B.S.E. 2020, Punjab)
36. Out of the following items, which one is shown in the ‘Receipts and Payments
Account of a not for profit organisation?
(A) Accrued subscription
(B) Outstanding salary
(C) Depreciation
(D) None of these
37. Out of the following items, which is not shown in the ‘Receipts and Payments A/c'
of a not for profit organisation?
(A) Subscription received in advance
(B) Subscription due
(C) Last year subscription received
(D) All of the above
38. 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
39. There are 500 members, each paying an annual subscription of ₹1,000;
(A) ₹5,00,000
(B) ₹4,96,000
(C) ₹4,94,000
(D) ₹5,01,000
40. Out of the following items, which one is shown in the ‘Receipts and
Payments A/c' of a non-profit organisation?
(A) Outstanding Rent
(B) Accrued Subscription
(C) Excess of Income over Expenditure
(D) None of these
41. Out of the following, which item is not recorded in Income and
Expenditure Account?
(A) Sale of Grass
(B) Locker's Rent
(C) Interest Received
(D) Interest received on Prize fund Investments
42. Which of the following is a not-for-profit organisation?
(A) Sports Clubs
(B) Schools
(C) Hospitals
(D) All of the above
43. Excess of match fund over match expenses will be shown on :
(A) Dr. side of Income & Expenditure A/C
(B) Cr. side of Income & Expenditure A/C
(C) Liability side of Balance Sheet
(D) Assets side of Balance Sheet
44. Which of the following is not a capital receipt?
(A) Donations for tournament
(B) Donations for building
(C) Life membership fee
(D) Entrance fees
(C.B.S.E. 2020, Delhi)
45. Which of the following is a capital receipt?
(A) Subscriptions
(B) Sale of used sports material
(C) Endowment fund
(D) Entrance fees
(C.B.S.E. 2020, Rajasthan)
46. 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.
(C.B.S.E. 2020, Rajasthan)
47. Income and Expenditure Account records :
(A) Receipts and Payments of Revenue and Capital nature both.
(B) Income and Expenditure of Revenue nature only.
(C) Expenditure of Capital nature only.
(D) Receipts of Revenue nature only.
(C.B.S.E. 2020, Punjab)
48. Which of the following statements is not true for Income and Expenditure
Account?
(A) It records items of revenue nature only.
(B) Items recorded in it relate only to the current period.
(C) Depreciation is not recorded in this account.
(D) It does not have an opening balance.
(C.B.S.E. 2020, Rajasthan)
49. Sale of old newspapers for ₹2,000 will be recorded on :
(A) Dr. Side of Income and Expenditure A/c
(B) Cr. Side of Income and Expenditure A/c
(C) Cr. Side of Receipts and Payments A/c
(D) None of these
50. Basis of preparing Receipts and Payments Account of a non-profit organisation is :
(A) Cash Basis
(B) Accrual Basis
(C) Both Cash and Accrual Basis
(D) None of these
51. If match expenses are more than match fund, the excess of match
expenses over match fund is transferred to :
(A) Assets side of Balance Sheet
(B) Liabilities side of Balance Sheet
(C) Debit side of Income & Expenditure A/c
(D) Credit side of Income & Expenditure A/c
52. Subscription received during 2018-19. was ₹5,00,000 and subscription
credited to Income & Expenditure Account was ₹5,10,000. Find out the subscription
outstanding as at 31st March 2019 on the basis of the following:
31-3-2018 31-3-2019
Subscription Received in Advance ₹7,000 ₹8,000
Subscription Outstanding ₹20,000 ?
(A) ₹9,000
(C) ₹29,000
(B) ₹11,000
(D) ₹31,000
53. The opening balance of Prize Fund was ₹1,00,000. During the year,
(A) ₹1,23,700
(B) ₹1,31,700
(C) ₹1,07,100
(D) ₹99,100
54. Jaipur Club has a prize fund of ₹6,00,000. It incurs expenses on prizes
amounting to ₹5,20,000. The expenses should be
(A) Debited to income and expenditure account.
(B) Presented on the asset side of the balance sheet.
(C) Debited to income and expenditure account and presented on the asset
side of the balance sheet.
(D) Deducted from the prize fund on the liability side of the balance sheet.
(C.B.S.E. 2020, Delhi)
55. On 1st April 2018, Maitreyi Club had a Prize Fund of ₹8,00,000.
It incurred expenses on prizes amounting to ₹8,70,000 during the year.
The balance of Prize Fund in the Balance Sheet as at 31st March 2019 will be :
(A) ₹70,000
(B) ₹8,00,000
(C) ₹(70,000)
(D) Zero
(C.B.S.E. 2020, Rajasthan)
56. The account which shows classified summary of transactions of a Cash
Bank in a Not for Profit organisation is called :
(A) Income and Expenditure Account
(B) Receipts and Payments Account
(C) Profit and Loss Account
(D) Subscription Account
(C.B.S.E. 2020, C)
57. Sports Star Charitable club has income of ₹16,000 and 'deficit
debited to capital fund of ₹4,300 for the year 2019-20, then expenditure
for the year 2019-20 is :
(A) ₹11,700
(B) ₹4,300
(C) ₹20,300
(D) None of these
(C.B.S.E. Sample Paper, 2020)
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