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Worksheets

Not for profit organization

Total questions: 20

Worksheet time: 12mins

Name
Class
Date
1.

Receipt and Payment Account generally shows:

a)

A Debit balance

b)

Surplus or Deficit

c)

A Credit Balance

d)

Capital fund

2.

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.

3.

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

4.

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)

None of there

5.

What is is the main motive of non-profit organisation

a)

Profit

b)

Service

c)

Both

d)

None of the above

6.

What is the nature of income and expenditure account?

a)

Real

b)

Personal

c)

Nominal

d)

None of the above

7.

Non-cash items are not recorded in:

a)

Balance Sheet

b)

Profit and Loss A/c

c)

Income and Expenditure A/c

d)

Receipt and Payment A/c

8.

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

a)

True

b)

False

9.

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.

a)

True

b)

False

10.

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?

a)

200

b)

250

c)

300

d)

350

11.

Rotary club sold an asset of ₹ 70000 for ₹ 65000 on 29 march 2019. It will be shown in Income and Expenditure account for the year ending 31 march 2019 as:

a)

₹ 65000 in debit side

b)

₹ 5000 in debit side

c)

₹ 65000 in credit side

d)

₹ 5000 in credit side

12.

Expense outstanding on the date of balance sheet is shown on:

a)

Liabilities side of balance sheet

b)

Income and expenditure account

c)

Both in Income and expenditure account and in balance sheet

d)

Receipts and Payments account

13.

XYZ charity club doesn’t maintain prize fund. Where would be the item ‘prize awarded of ₹ 5000 would be taken to:

a)

Debit side of Income and expenditure account

b)

Credit side of Income and expenditure account

c)

Liabilities side of balance sheet

d)

None of these

14.

Arora entertainment club maintained a prize fund. After adjustment of expenses and incomes related to prize fund, it showed a negative balance. This negative balance would:

a)

Be shown in liabilities side of balance sheet

b)

Not be recorded

c)

Be transferred to debit side of Income and expenditure account

d)

Be shown in assets side of balance sheet

15.

Capital of NPO is generally known as:

a)

Equity

b)

Accumulated fund

c)

Capital fund

d)

Financial reserve

16.

Subscriptions received in cash during the year amounted to ₹ 60000 , subscription received in advance for the next year was ₹ 3000 and received in advance during previous year was ₹ 2000. Subscription in arrears at the end of current year was ₹ 5400. The amount credited to the Income and expenditure account will be:

a)

.₹ 53600

b)

₹ 66400

c)

₹ 55600

d)

₹ 64400

17.

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

a)

Sale of old news papers

b)

Loss on sale of asset

c)

Honorarium paid to the secretary

d)

Sale proceeds of furniture

18.

Legacy is a

a)

Revenue expenditure

b)

Capital expenditure

c)

Revenue receipt

d)

Capital receipt

19.
Sale of grass in the case of Sports Club is:
a)
Revenue Receipt
b)
Capital Receipt
c)
Profit
d)
Asset
20.

A club purchased refrigerator for Rs 8,000 and spent Rs 600 for stabilizer and Rs 400 on its electric fittings. The refrigerator should be capitalized for Rs:

a)

9000

b)

8600

c)

8400

d)

8000