Not for profit organization

Receipt and Payment Account generally shows:

• A Debit balance

• Surplus or Deficit

• A Credit Balance

• Capital fund

Donation received for a special purpose

• Should Be credited to Income and Expenditure Account

• Should be credited to separate account and shown in the Balance Sheet

• Should be shown on the assets side

• Should not be recorded at all.

The amount of ‘Entrance Fees’ received by a Non-profit organisation (if it is received regularly) is shown in which of the following?

• Liability side of Balance Sheet

• Assets side of Balance Sheet

• Debit side of Income and Expenditure Account

• Credit side of Income and Expenditure Account

Subscription received by a school for organising annual function is treated as

• Capital Receipt (i.e., Liability)

• Revenue Receipt (i.e., Income)

• Asset

• None of there

What is is the main motive of non-profit organisation

• Profit

• Service

• Both

• None of the above

What is the nature of income and expenditure account?

• Real

• Personal

• Nominal

• None of the above

Non-cash items are not recorded in:

• Balance Sheet

• Profit and Loss A/c

• Income and Expenditure A/c

• Receipt and Payment A/c

There is no difference between Receipts and Payment Account and Income and Expenditure Account.

• True

• False

In the Income and Expenditure Account, all incomes received during the year irrespective of the year for which they are received, are to be recorded.

• True

• False

Khanna sports club received ₹ 200 as subscription for the accounting year 2018 -19 and ₹ 100 are yet to be received. It also received ₹ 50 as advance subscription for subsequent year. What amount of subscription would be shown in credit side of Income and Expenditure A/C for the year ending 31 march 2019?

• 200

• 250

• 300

• 350