Class 12 Accountancy 1 Mark Questions Chapter 1 Accounting for Not for Profit Organisation

One Mark Questions for Class 12 Accountancy Chapter 1 Accounting for Not for Profit Organisation

Question 1.
How are specific donations treated while preparing final accounts of a ‘Not-For-Profit Organisation’ (CBSE Delhi 2019)
Answer:
Specific donation is treated as capital receipt & it is shown on liabilities side of Balance Sheet.

Question 2.
State the basis of accounting of preparing ‘Income and Expenditure Account’ of a ‘Not-For-Profit Organisation. (CBSE Delhi 2019)
Answer:
Accrual basis.

Question 3.
Differentiate between ‘Receipts and Payments Account’ and ‘Income and Expenditure Account’ on the basis of ‘Period’. (CBSE Outside Delhi 2019)
Answer:

Question 4.
What is meant by ‘Life membership fees’ ₹ (Outside Delhi 2019)
Answer:
Membership fee paid in lump stun to become a life member of a not-for-profit organisation.

Question 5.
How are the following items presented in financial statements of a Not-for-Profit organisation: (CBSE Delhi 2019)
(a) Tournament Fund 80,000
(b) Tournament expenses 14,000
Answer:

Question 6.
How are general donations treated while preparing financial statements of a not-for-profit organisation (CBSE Compt. 2019)
Answer:
General donations are treated as revenue receipts.
or
How are general donations treated while preparing financial statements of a not-for-profit organisation (CBSE Compt. 2019)
Answer:
Life membership fee is the membership fee paid by some members as a lump sum amount instead of a periodic subscription.

Question 7.
State the basis of accounting on which ‘Receipt and Payment Account’ is prepared in case of Not-for Profit Organisation. (CBSE Sample Paper 2018-19)
Answer:
Cash basis of accounting.

Question 8.
Where will you show the ‘Subscription received in advance’ during the current year in the Balance Sheet of a Not-For-Profit Organisation₹ (CBSE Sample Paper 2018-19)
Answer:
Liability side of current year’s balance sheet.

Question 9.
A not-for-profit organisation sold its old furniture. State whether it will be treated as revenue receipt or capital receipt.
Answer:
Revenue.

Question 10.
Mention a fund who are specific in nature.
Answer:
Sports fund.

Question 11.
Income and Expenditure Account of a not-for-profit organisation has shown credit balance of ₹ 1,20,000 during 2012-13. When will you show it
Answer:
It will be added in the capital fund on the liability side.

Question 12.
Do not for profit organisation maintain proper system of accounts
Answer:
No.

Question 13.
Name any one account prepared by not for profit organisations.
Answer:
Receipts and Payment Account, Income and Expenditure Account and Balance Sheet.

Question 14.
Give one example of not for profit organisations.
Answer:
Charitable dispensaries, schools, educational institutions, trusts, societies etc.

Question 15.
State one source of not for profit organisations.
Answer:
Subscriptions, donations, legacies, government grant etc.

Question 16.
State the receipts relating to non-recurring in nature.
Answer:
Capital receipts.

Question 17.
State the payments relating to non-recurring in nature.
Answer:
The payments can be classified into capital payment and revenue payment.

Question 18.
Give an example of revenue receipt.
Answer:
Subscription.

Question 19.
Give an example of capital receipt.
Answer:
Government grant.

Question 20.
Give an example of capital payments.
Answer:
Purchase of assets.

Question 21.
What name is used for the cash book in case of not for profit organisations?
Answer:
Receipts and Payments Account.

Question 22.
Which side the revenue receipts are transferred in the income and enpenditure account?
Answer:
Credit side.

Question 23.
When the capital receipts are shown?
Answer:
Liabilities side.

Question 24.
Where the capital payments are shown?
Answer:
Assets side.

Question 25.
In which account the funds are transferred in case of not for profit organisation?
Answer:
Capital Fund.

Question 26.
What is the major source of income for not for profit organisations?
Answer:
Subscription.

Question 27.
What name is used for profit in case of not for profit organisations?
Answer:
Surplus.

Question 28.
What name is used for loss in case of not for profit organisations?
Answer:
Deficit.

Question 29.
Is the surplus or deficit in case of not for profit organisations distributed among members?
Answer:
No.

Question 30.
What type of rec eipts are recorded in the income and expenditure account?
Answer:
Revenue Receipts.

Question 31.
What type of payments are recorded in the income and expenditure account?
Answer:
Revenue Payments.

Question 32.
Which system of accountancy is followed to prepare receipts and payments account?
Answer:
Cash system of accounting.

Question 33.
Which system of account is followed to prepare income and expenditure account.
Answer:
Accrual system of accounting.