Multiple Choice Questions:        

1. Income and Expenditure Account is prepared by a not-for -profit organization on:

(a) Cash Basis                     (b) Accrual Basis

(c) Receipt Basis               (d) Accrual Cum Cash Basic

Ans: (b) Accrual Basis

 

2. Receipts and Payment Account is a:

(a) Real Account               (b) Personal Account

(c) Nominal Account       (d) Both (a) and (b)

Ans: (a) Real Account    

 

3. Tournament Fund Balance as on March 31, 2018 ₹ 1,20,000 Donations received towards Tournament Fund

During the year 2018-19                24,000

Expenditure incurred during the year on Tournament    27,200

Interest received on Tournament Fund Investments      9,600 How much amount of Tournament Fund will be shown in the Balance Sheet as on March 31, 2019.

(a) ₹ 1,44,000                     (b) ₹ 1,16,000

(c) ₹ 1,47,200                     (d) ₹ 1,26,400

Ans: ₹ 1,26,400

 

4. There are 500 members, each paying an annual subscription of ₹ 100; Subscription received during the year ₹ 46,000; Subscription due but not received at the beginning of the year is ₹ 1,200. How much amount of Subscription should be shown in the Income and Expenditure Account?

(a) ₹ 44,800                         (b) ₹ 47,200

(c) ₹ 50,000                         (d) ₹ 50,200

Ans: (c) ₹ 50,000              

 

5. How much amount of Stationery will be shown in the Income and Expenditure Account for the year ended March 31, 2019?

Amount paid for Stationery purchased during 2018-19    40,000

Creditors for stationary on March 31, 2019           3,600

Stationary spoiled during the year            1,200

Stock of stationery on March 31, 2019    4,000

(a) ₹ 39,600                         (b) ₹ 43,600

(c) ₹ 38,400                         (d) ₹ 36,000

Ans: (c) ₹ 38,400                              

 

 

6. The account prepared by a Not for profit organization that does not begin with any opening balance is known as:

(a) Bank A/c                       (b) Receipts and Payments A/c

(c) Cash A/c                        (d) Income and Expenditure A/c

Ans: (d) Income and Expenditure A/c

7. The account in which Accrued Income and Outstanding expenses are never shown by a Not for profit organization is:

(a) Closing Balance Sheet             (b) Receipts and Payments A/c

(c) Subscription A/c                         (d) Income and Expenditure A/c

Ans: (b) Receipts and Payments A/c       

 

8. From the following extract of Receipts and Payments Account and the additional information given below, what amount of subscriptions will be shown as income in the Income and Expenditure Account for the year ending March 31, 2018

Receipts               Amount

Subscriptions:    ₹            

2016-17 7,000

2017-18 30,000

2018-19 5,000

42,000

                Additional Information:

(a)          Subscriptions Outstanding as on March 31, 2017                ₹ 8,500

(b)          Total Subscriptions Outstanding as on March 31, 2018     ₹ 18,500

(c)           Subscriptions received in advance as on March 31, 2017 ₹ 6,000

(a) ₹ 53,000                         (b) ₹ 46,000

(c) ₹ 58,000                         (d) ₹ 48,000

Ans: (a) ₹ 53,000              

9. Rent paid during the year ₹ 3,000 whereas the quarterly Rent of ₹ 600 was outstanding at the end of current year. The amount of rent outstanding at the beginning of current year will be:

(a) ₹ 2,400                           (b) ₹ 3,600

(c) ₹ 1,200                           (d) ₹ 5,400

Ans: (c) ₹ 1,200                

10. Yamuna sports club was admitted as a member of All India lawn Tennis Association on 30th September 2018, when it paid affiliation fees for 4 years amounting to ₹ 12,000. The amount of fees to be debited to the Income and Expenditure account in the books of Yamuna sports club for the year ending 31 March 2019, will be

(a) ₹ 3,000                           (b) ₹ 6,000

(c) ₹ 1,200                           (d) ₹ 1,500

Ans: (a) ₹ 3,000