{"id":43732,"date":"2023-02-03T10:00:43","date_gmt":"2023-02-03T04:30:43","guid":{"rendered":"https:\/\/www.aplustopper.com\/?p=43732"},"modified":"2023-02-04T10:15:11","modified_gmt":"2023-02-04T04:45:11","slug":"plus-two-accountancy-chapter-wise-questions-answers-chapter-1","status":"publish","type":"post","link":"https:\/\/www.aplustopper.com\/plus-two-accountancy-chapter-wise-questions-answers-chapter-1\/","title":{"rendered":"Plus Two Accountancy Chapter Wise Questions and Answers Chapter 1 Accounting for Not For Profit Organisation"},"content":{"rendered":"

Kerala Plus Two Accountancy Chapter Wise Questions and Answers Chapter 1 Accounting for Not For Profit Organisation<\/h2>\n

Plus Two Accountancy Accounting for Not For Profit Organisation One Mark Questions and Answers<\/h3>\n

Question 1.
\nThe Receipts and payments account is a_______.
\n(a) Real Account
\n(b) Nominal Account
\n(c) Personal Account
\n(d) Impersonal Account
\nAnswer:
\n(a) Real Account<\/p>\n

Question 2.
\nThe Revenue account prepared by a not-for-profit organisation is called.
\n(a) Receipt and Payment A\/c
\n(b) Profit and Loss A\/c
\n(c) Income and Expenditure A\/c
\n(d) Statement of affairs
\nAnswer:
\n(c) Income and Expenditure A\/c<\/p>\n

Question 3.
\nincome and Expenditure A\/c is prepared in order to ascertain_______.
\n(a) Profit or Loss
\n(b) Surplus or deficit
\n(c) Cash in hand and at bank
\n(d) Assets and Liabilities
\nAnswer:
\n(b) Surplus or deficit.<\/p>\n

Question 4.
\nThe Receipts and payment account contains______.
\n(a) Capital receipts and payments only
\n(b) Revenue receipts and payments only
\n(c) All receipts and payments
\n(d) Petty receipts and payments only
\nAnswer:
\n(c) All receipts and payments.<\/p>\n

Question 5.
\nIncome and Expenditure A\/c is a______account.
\n(a) Nominal
\n(b) Real
\n(c) Personal
\nAnswer:
\n(a) Nominal<\/p>\n

Question 6.
\nIncome and Expenditure A\/c records transactions of______nature.
\n(a) Revenue
\n(b) Capital
\n(c) Both revenue and capital
\nAnswer:
\n(a) Revenue<\/p>\n

Question 7.
\nChoose odd one and give reasons.
\n(a) Tsunami arts and club
\n(b) Tsunami trading company
\n(c) Tsunami artis club
\n(d) Tsunami library
\nAnswer:
\n(b) Tsunami trading company is a trading organisation, all others are non-trading organisation.<\/p>\n

Question 8.
\n______represents the excess of the assets over liabilities.
\nAnswer:
\nCapital Fund<\/p>\n

Question 9.
\nThe excess of income over expenditure is called______.
\nAnswer:
\nSurplus<\/p>\n

Question 10.
\nThe amount received by a Non-profit organisation as per the will of a deceased person is called____.
\nAnswer:
\nLegacy.<\/p>\n

Question 11.
\nReceipts and payments A\/c is maintained under_____system of accounting.
\nAnswer:
\nCash<\/p>\n

Question 12.
\nSpecific donation is a______receipt.
\nAnswer:
\nCapital<\/p>\n

Plus Two Accountancy Accounting for Not For Profit Organisation Two Mark Questions and Answers<\/h3>\n

Question 1.
\nDefine Receipts and Payment Account.
\nAnswer:
\nReceipts and Payment account is \u201ca statement prepared at the end of an accounting year giving a summary of all receipts and payments recorded in cash book.\u201d It is debited with all items of receipts and credited with all payments.<\/p>\n

Question 2.
\nWhat are the difference between cash book and Receipts and payment A\/c?
\nAnswer:
\nThe difference between Receipts and Payment A\/c and cash book are as follows.<\/p>\n\n\n\n\n
Receipts and Payment A\/c<\/td>\nCash Book<\/td>\n<\/tr>\n
1. Entries are not made date-wise
\n2. All entries are made in classified form
\n3. This accounts is opened by non-trading concern only.<\/td>\n		1. All entriess are made date-wise
\n2. All entries are made in detail
\n3. This account is opened in both trading and non-trading concerns.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Question 3.
\nWhat do you mean by Income and Expenditure Account?
\nAnswer:
\nAn Income and Expenditure Account is a nominal account prepared by a not-for-profit organisation, in order to ascertain the surplus or deficit by recording revenue items of the particular period. It isparepared in the form of profit and loss account.<\/p>\n

Question 4.
\nState whether the following expenditure is revenue or capital. Give reasons for your answers.<\/p>\n

    \n
  1. The advertising expenditure, the benefit of which will last for 5 years.<\/li>\n
  2. Registration fee paid at the time of purchase of a building.<\/li>\n<\/ol>\n

    Answer:
    \n1. Revenue Expenditure \/ Deferred Revenue Expenditure:<\/span>
    \nAdvertising expenditure is not written off completily to the profit and loss account of the accounting year during which it is incurred. It is spread overa number of years whose benefit is likely to be received.<\/p>\n

    2. Capital Expenditure:<\/span>
    \nAny amount spent on acquistion of an asset or for increasing the nature of an asset is called capital expenditure. Registration fee paid is a capital expenditure.<\/p>\n

    Question 5.
    \nHow will you treat Entrance fees in Income and Expenditure Account?
    \nAnswer:
    \nThe fee charged for admitting a person as a member in an institution is called admission fee or entrance fee. It is paid only once by the member, it is not of a recurring nature and should not be treated as income. There is another argument that though each member pays it only once, the institution receives it every year when new admission take place.<\/p>\n

    Therefore, it can be treated as revenue income. Here again if there is specific instruction to treat the entire or a portion of the amount as capital the relevant amount should be taken to Balance Sheet.<\/p>\n

    Plus Two Accountancy Accounting for Not For Profit Organisation Three Mark Questions and Answers<\/h3>\n

    Question 1.
    \nWhat are the Accounting records of not-for-profit organisation?
    \nAnswer:<\/p>\n

      \n
    1. Not-for-profit organisation usually keep \u2018a cash book\u2019 in which all receipts and payments are recorded.<\/li>\n
    2. They maintain \u2018a ledger\u2019 containing the accounts of all incomes, expenses, assets, and liabilities which facilities the preparationof financial state\u00acments at the end of the accounting year.<\/li>\n
    3. The final accounts of a non-profit organisation con\u00acsist of the following:\n