Please refer to Accounting For Not For Profit Organisation Class 12 Accountancy Exam Questions provided below. These questions and answers for Class 12 Accountancy have been designed based on the past trend of questions and important topics in your class 12 Accountancy books. You should go through all Class 12 Accountancy Important Questions provided by our teachers which will help you to get more marks in upcoming exams.
Class 12 Accountancy Exam Questions Accounting For Not For Profit Organisation
Class 12 Accountancy students should read and understand the important questions and answers provided below for Accounting For Not For Profit Organisation which will help them to understand all important and difficult topics.
Question. Give to main sources of income of a ‘Not for profit organisation’.
Ans. (i) Subscription (ii) Donation
Question. State any two characteristics of Receipt and Payment Account.
Ans. (i) Receipts and Payments Account is a summary of Cash Book.
(ii) Non- cash expenses such as depreciation and outstanding expenses are not shown in Receipts and Payments Account.
Question. How would you account for ‘subscription due to be received’ in the current year in the books of a non trading organisation?
Ans. Subscription due to be received is added with subscription received during the year in Income and Expenditure A/C and shown as an asset in the closing balance sheet.
Question. How would you account for ‘subscription received in advance’ in the current year in the books of a non trading organisation?
Ans. Subscription received in advance is subtracted from subscription received during the year in Income and Expenditure A/C and shown as a liability in the closing Balance sheet.
Question. What is meant by fund based accounting?
Ans. Fund based accounting is a book peeping technique where by separate self-balancing sets of assets, liability, income, expenses and fund balance accounts are maintained for each contribution for a specific purpose.
Question. Tournament fund appears in the books Rs. 15,000 and expenses on tournament during the year were Rs. 18000. How will you show this in format while preparing financial statement of a not-for-profit organisation?
Ans. Income and Expenditure A/C
For the year ended ………
|To Tournament Expenses 18000 Less Tournament Fund 15000||3000|
Question. As per Receipt and Payments account for the year ended on March 31, 2008, the subscription received were Rs. 2,50,000. Addition information given is as follows:-
(i) Subscriptions outstanding on 01-04-2007 Rs. 50,000.
(ii) Subscription outstanding on 31-03-2008 Rs. 35,000.
(iii) Subscription Received in advance as on 31-03-2008 Rs. 30000.
Ascertain the amount of income from subscription for the year 2007-08.
Ans. Calculation of current year subscription to be shown in Income and Expenditure A/C for the year ended March 31, 2008 :-
Total subscription received during the year 250000
Outstanding subscription on 31-03-2008 35000
Advance subscription on 01-04-2007 NIL 35000
Outstanding subscription on 01-04-07 50000
Advance subscription on 31-03-2008 30000 (80000)
Current year subscription 205000
Question. From the following extracts of Receipts and Payments Account and the additional information given below, compute the amount of income from subscriptions and show us how they would appear in the Income and Expenditure Account for the year ending March 31, 2007and the Balance sheet on that date:-
Receipts and Payments A/C
For the year ending March 31, 2007
|Subscription :- 2005-06 – 7000 2006-07 – 30000 2007-08 – 5000||42000|
(i) Subscription outstanding on March 31, 2006 Rs. 8500.
(ii) Total subscriptions outstanding on March 31, 2007 Rs. 18,500.
(iii) Subscriptions received in advance as on March 31, 2006 Rs. 4000.
Ans. Income and Expenditure A/C
For the year ending March 31, 2007
|By Subscription 30000 Add:- outstanding subscription for 2006 -07 (18500-1500) 17000 Add:- Advance in 2005-06 4000||51000|
Balance sheet As on 31st March 20007
|Subscription in advance||5000||Subscription outstanding 2005-06 1500 2006-07 17000||18500|
Question.. From the following particulars of a club, calculate the amount of salaries to be shown in Income and expenditure account for the year ended 31 March, 2008:-
Total salaries paid during the year 2007-08 Rs. 87,000
Outstanding salaries on 01-04-2007 Rs. 17,000
Prepaid salaries on 01-04-2007 Rs. 19,000
Outstanding salaries on 31-03-2008 Rs. 32,000
Prepaid salaries on 31-03-2008 Rs 20,000
Ans. Calculation of salaries to be shown in Income and Expenditure A/C for the year ended March 31, 2008:-
Total Salaries paid during the year 87,000
Outstanding salaries on 31-03-2008 32,000
Prepaid salaries on 01-04-2007 19,000 51,000
Less:- Outstanding Salaries on 01-04-2007 17,000
Prepaid salaries on 31-03-2008 2,000 (37,000)
Salaries to be shown in Income and Expenditure A/C 101000
Question. Calculate the amount to be debited to Income and Expenditure account under the heading sports items for the year 2006-07 in respect of the Osmosis club:-
Stock of sports items on 01-04-2006 Rs. 44,700
Stock of sports items on 31-03-2007 Rs. 24,500
Paid for sports items during the year Rs. 97,900
Creditors for supplies of sports items 31-03-2007 Rs. 26,500.
Amount paid for sports items during the year 97900
Stock of sports items as on 01-04-2006 44700
Creditors for sports as on 31-03-2007 26500 71200
Stock of sports items as on 31-03-2007 24500
Sports items to be debited in the Income and expenditure A/C 144600
Question. Show the following information in the Balance Sheet of the Cosmos club as on 31st March 2007:-
|Particulars||Dr (Rs)||Cr (Rs)|
|Tournament Fund Investment||1,50,000||–|
|Income From Tournament Fund Investment||–||18,000|
Interest accrued on Tournament Fund Investment Rs. 6000.
Ans. Balance sheet of Cosmos Ltd.
As on 31st March, 2007
|Tournament Fund 1,50000 Add Income from Tournament Fund Investment 18,000 Accured interest on tournament fund Investment 6000 1,74,000 Less Tournament Expenses 12,000||162000||Tournament Fund investment. Accured interest on Tournament fund Investment||1,50000 6000|
Question. Calculate the amount medicines to be debited in the Income and Expenditure Account of a Hospital on the basis of the following information:-
|01-04-2006 Rs.||31-03-2007 Rs.|
|Stock of Medicines||90,000||1,24,000|
|Creditors for Medicines||2,40,000||2,04,000|
Amount paid for medicines during the year was Rs. 6,79000.
Ans. Amount paid for medicine during the year 6,79000
Stock of medicine on 01-04-2006 90,000
Creditors for medicine on 31-03-2007 204,000 294,000
Stock of medicine on 31-03-2007 124,000
Creditors for medicine as on 01-04-2006 240,000 364,000
Medicine to be debited in in Income and Expenditure A/C. 609000
Question. Distinguish between Receipts and Payments A/C and Income and expenditure A/C.
Ans. Difference between Receipts and Payments and Income and Expenditure.
|Basis||Income and Expenditure||Receipts and Payments|
|(i) Nature||It is a kin to profit and loss A/C||It is the summary of Cash book.|
|(ii) Nature of Items||It records income and expenditure of revenue nature only||It records receipts and payments of both capital and revenue nature.|
|(iii) Result||The result of Income and expenditure A/C is surplus or deficit.||The result of Receipt and Payments is closing balance of cash and Bank.|
We hope you liked the above provided Accounting For Not For Profit Organisation Class 12 Accountancy Exam Questions. If you have any further questions please put them in the comments section below so that our teachers can provide you an answer.