Income and expenditure account is prepared in order to ascertain

• Profit or loss

• Surplus or deficit

• Cash in hand & at bank

• Assets & liabilities

The Receipts and payments account contains

• Capital receipts and payments only

• Revenue receipts and payments only

• Petty receipts and payments only

• All receipts and payments

Receipts and Payments Account contains ............items

• Revenue

• Capital

• Both revenue and capital

• None of these

Main source of income for non-profit organisation is

• Rent

• Salaries

• Donations and subscriptions

• Sale of assets

Which of the following should not be recorded in the income and expenditure account?

• Sale of old newspapers

• Loss on sale of assets

• Honorarium paid to the secretary

• Sale proceeds of furniture

Donations received for a specific purpose is

• Revenue receipt

• Capital receipt

• Revenue expenditure

• Capital expenditure

The financial year of a drama club ends on 31 December. The club rents a theater at an annual rent of $3600. On 1 January 2001 rent accrued amounted to $300. During 2001 a total of $4500 rent was paid.

How much will be shown for rent in the club’s receipts and payments account for the year ended 31 December 2001?

• $3 600

• $3 900

• $4 200

• $4 500

A cricket club has 60 members and an annual subscription is $10. Subscriptions received during the year were $580, which included opening arrears of $20.

What was the balance on the subscriptions account at the end of the year?

• $20 debit

• $30 debit

• $40 credit

• $40 debit

When the final accounts for a tennis club are being prepared it is found that some members’ subscriptions have been received for the following year.

Where will these subscriptions appear in the statement of financial position?

• current asset

• current liability

• added to the accumulated fund

• deducted from accumulated fund

Which will appear in a receipts and payments account?

• depreciation of fixed assets

• opening bank balance

• refreshment stocks

• subscriptions outstanding at year end.