Home › Quizzes › Accounting for Non-profit Organisations

Accounting for Non-profit Organisations

CS Foundation Accountancy

25 Questions Published
Play Quiz Practise this topic out loud

Questions

Question 1 Multiple Choice (Single Answer)

The amount paid to a person for providing voluntary services to a non-profit organisation is called

  1. wage
  2. honorarium
  3. grant
  4. bonus
  5. fees
Question 2 Multiple Choice (Single Answer)

The amount received by non-profit organisations under will from a deceased person is called

  1. subscription
  2. life membership fees
  3. legacy
  4. endowment fund
  5. donation
Question 3 Multiple Choice (Single Answer)

Receipt and payment account is ______ in nature.

  1. real account
  2. personal account
  3. representative personal account
  4. nominal account
  5. None of these
Question 4 Multiple Choice (Single Answer)

The donations received by non-profit organisations for a specific purpose are

  1. revenue receipts and thus, shown on credit side of income and expenditure account
  2. revenue receipts and thus, shown on debit side of income and expenditure account
  3. capital receipts and thus, shown on credit side of income and expenditure account
  4. capital receipts and thus, shown on liabilities side of the balance sheet
  5. capital receipts and thus, shown on assets side of the balance sheet
Question 5 Multiple Choice (Single Answer)

Which of the following items will not be recorded in 'receipt and payment' account?

  1. Depreciation
  2. Salary outstanding at the end of the year
  3. Donation promised, but not yet received
  4. All of the above
  5. None of these
Question 6 Multiple Choice (Single Answer)

Which of the following transactions are recorded in the income and expenditure account?

  1. Both revenue expenditures and revenue incomes
  2. Both revenue and capital nature of transactions
  3. Only capital expenditures and capital incomes
  4. Only cash transactions
  5. Only credit transactions
Question 7 Multiple Choice (Single Answer)

The subscription income of a club for the year was Rs. 85,000. An amount of Rs. 83,000 was received during the year. Rs. 2800 had been accrued for the subscription during the previous year, out of which Rs. 2000 was received during the current year. There were also advance subscriptions received in the previous year amounting to Rs. 1200. The subscription received in advance during the current year for the coming year was Rs. 300. How much is the total subscription outstanding or due at the end of the year?

  1. Rs. 3900
  2. Rs. 3100
  3. Rs. 2000
  4. Rs. 3200
  5. Rs. 3600
Question 8 Multiple Choice (Single Answer)

Which of the following transactions is ignored in the income and expenditure account?

  1. Depreciation of building
  2. Subscription due at the end of the year
  3. Profit on sale of assets
  4. Sale of assets
  5. General donations received
Question 9 Multiple Choice (Single Answer)

If the total of debit side of the income and expenditure account is more than the total of credit side, it is called

  1. credit balance
  2. surplus
  3. deficit
  4. profit
  5. loss
Question 10 Multiple Choice (Single Answer)

Which of the following is considered a capital nature transaction for non-profit organisations?

  1. Legacy
  2. Honorarium
  3. Entrance fees not capitalised
  4. Stationery consumed during year
  5. Grant from the government
Question 11 Multiple Choice (Single Answer)

A charitable trust decided to maintain a sports fund to organise matches. The donations received in the fund during the year amounted to Rs. 30,000. An interest of Rs. 2000 was received for placing these funds in a bank account. An amount of Rs. 35,000 was paid for organising various matches. Which of the following statements is correct?

  1. Rs. 30,000 will be shown in sports fund on the liabilities side in the balance sheet and nothing will be shown in the income and expenditure account.
  2. Only Rs. 3000 will be debited from the income and expenditure account.
  3. Rs. 35,000 will be debited from the income and expenditure account.
  4. Rs. 35,000 will be debited from the income and expenditure account and Rs. 2000 will be credited to it.
  5. Rs. 33,000 will be debited from the income and expenditure account.
Question 12 Multiple Choice (Single Answer)

If the income shown in the income and expenditure account for entrance fees is Rs. 24,000 and 60% of the entrance fees received has been capitalised, find out the actual entrance fees received.

  1. Rs. 14,400
  2. Rs. 9,600
  3. Rs. 24,000
  4. Rs. 38,400
  5. Rs. 40,000
Question 13 Multiple Choice (Single Answer)

If the amount of interest on 12% investment shown as income in income and expenditure account is Rs. 2400, what will be the investment shown in the balance sheet?

  1. Nil
  2. Rs. 2400
  3. Rs. 288
  4. Rs. 20000
  5. None of these
Question 14 Multiple Choice (Single Answer)

The amount of subscription received by Chandigarh Club during 2014-15 was Rs. 84,000. This included Rs. 5000 for 2015-16. A subscription of Rs. 9000 was accrued for 2013-14, of which Rs. 7000 was received during 2014-15 and Rs. 10,000 was due for 2014-15. Calculate the subscription income for 2014-15.

  1. Rs. 84,000
  2. Rs. 82,000
  3. Rs. 94,000
  4. Rs. 72,000
  5. Rs. 86,000
Question 15 Multiple Choice (Single Answer)

The book value of furniture at the beginning of an year on 1st April was Rs. 1,50,000. During the year, furniture with original book value of Rs. 30,000 was sold for Rs. 25,000 on 1st January and furniture worth Rs. 20,000 was purchased. If the rate of depreciation is 10% per annum, what will be the value of furniture on 31st March?

  1. Rs. 1,35,000
  2. Rs. 1,08,000
  3. Rs. 1,53,000
  4. Rs. 1,30,500
  5. Rs. 1,26,000
Question 16 Multiple Choice (Single Answer)

A club has sports material worth Rs. 10,000 at the beginning of the year. It purchased further sports material for Rs. 25,000. During the year, it sold some of the sports material costing Rs. 2000 for Rs. 1500. At the end of the year, sports material worth Rs. 27,000 was left. What is the amount of sports material consumed during the year?

  1. Rs. 8,000
  2. Rs. 6,500
  3. Rs. 6,000
  4. Rs. 10,000
  5. Rs. 10,500
Question 17 Multiple Choice (Single Answer)

Stationery purchased during a year amounted to Rs. 12,000. Stationery credits at the beginning and at the end of the year were Rs. 2000 and Rs. 3000, respectively. Calculate the amount to be shown on the expenditure side of the stationery account. Stationery stock at the beginning and end of the year amounted to Rs. 3500 and Rs. 5000, respectively.

  1. Rs. 11,500
  2. Rs. 12,500
  3. Rs. 13,000
  4. Rs. 10,500
  5. Rs. 12,000
Question 18 Multiple Choice (Single Answer)

Ludhiana Club has a bar inside the club. Purchases on the account of bar during the previous month were Rs. 15,000. Opening stock was Rs. 1000 and closing stock was Rs. 500 more than the opening stock. There was an outstanding credit at the end of the month of Rs. 3500. Total bar takings during the period was Rs. 22,000 cash with Rs. 3000 accrued at the end. Calculate the profit or loss of the bar.

  1. Profit Rs. 7000
  2. Loss Rs. 7000
  3. Profit Rs. 4000
  4. Profit Rs. 10,500
  5. Profit Rs. 8000
Question 19 Multiple Choice (Single Answer)

A club made an investment of Rs. 1,10,000 in 8% debentures from an open market of face value Rs. 1,00,000 on 1st July, 2015. Interest is due on 30th June and 31st December. Interest due on 31st December is duly received on time. Which of the following statements is correct if the accounts are maintained on mercantile basis?

  1. Interest income of Rs. 6600 and an accrued interest of Rs. 2200 will be credited to the income and expenditure account on the assets side of the balance sheet.
  2. Interest income of Rs. 6000 and accrued interest of Rs. 2000 will be credited to the income and expenditure account on the assets side of the balance sheet.
  3. Interest income of Rs. 4400 and accrued interest of Rs. 2200 will be credited to the income and expenditure account on the assets side of the balance sheet.
  4. Interest income of Rs. 4000 and accrued interest of Rs. 2000 will be credited to the income and expenditure account on the assets side of the balance sheet.
  5. Interest income of Rs. 8000 and accrued interest of Rs. 2000 will be credited to the income and expenditure account on the assets side of the balance sheet.
Question 20 Multiple Choice (Single Answer)

An annual affiliation fee of Rs. 25,000 has been paid by a club for the affiliation it made with an organisation. The fee was paid on 30th June, 2014. How will it be shown in the accounts of the club in the income statement and balance sheet for the year ending 31st March, 2015?

  1. Rs. 25,000 paid will be shown on the assets side of the balance sheet.
  2. Rs. 25,000 paid will be shown on the expenditure side of the income and expenditure account.
  3. Rs. 12,500 paid will be shown on the expenditure side of the income and expenditure account and Rs. 12,500 will be shown on the assets side of the balance sheet.
  4. Rs. 18,750 paid will be shown on the expenditure side of the income and expenditure account and Rs. 6250 will be shown on assets side of the balance sheet.
  5. Rs. 18,750 paid will be shown on the expenditure side of the income and expenditure account and Rs. 6250 will be shown on the liabilities side of the balance sheet.
Question 21 Multiple Choice (Single Answer)

An amount of Rs. 35,000 is paid to stationery creditors. Credits at the beginning and end of the year amounted to Rs. 12,000 and Rs. 7000. Stock of stationery at the starting and end of the year was Rs. 2500 and Rs. 4500, respectively. Credit purchase is 75% of total amount of purchase. What will be the amount of stationery shown in income and expenditure account?

  1. Rs. 35,000
  2. Rs. 30,000
  3. Rs. 40,000
  4. Rs. 38,000
  5. Rs. 42,000
Question 22 Multiple Choice (Single Answer)

Subscription income during an year is Rs. 1,60,000. Subscription accrued at the beginning and at the end is Rs. 20,000 and Rs. 25,000, respectively. Subscription received in advance at the beginning and at the end is Rs. 5,000 and Rs. 7,000, respectively. Find the amount actually received for subscription.

  1. Rs. 1,57,000
  2. Rs. 1,63,000
  3. Rs. 1,67,000
  4. Rs. 1,55,000
  5. Rs. 1,62,000
Question 23 Multiple Choice (Single Answer)

Sports fund on 1.4.2014 was Rs. 15,000 and sports fund investment on 1.4.2014 in 10% deposit was Rs. 15,000 (only Rs. 1000 received during the year). Donations received during the year for sports events were Rs. 3000. Sports prize awarded was Rs. 3800. Expenses on sports events were Rs. 4500. What will be the amount of sports fund to be shown on the liabilities side of the balance sheet at the end of the year?

  1. Rs. 11,200
  2. Rs. 10,700
  3. Rs. 19,500
  4. Rs. 15,000
  5. Rs. 15,700
Question 24 Multiple Choice (Single Answer)

There are 500 members of a club. Each member is required to pay an annual subscription of Rs. 500. During 2014, subscription of 20 members was due, whereas 50 members paid their subscription of 2015 in advance. During the current year, subscription amount received is Rs. 2,10,000 (of which Rs. 7000 related to the previous year and Rs. 4000 for 2016). Find the amount of subscription due at the end.

  1. Rs. 25,000
  2. Rs. 29,000
  3. Rs. 26,000
  4. Rs. 54,000
  5. Rs. 35,000
Question 25 Multiple Choice (Single Answer)

A club has the following balances at the beginning of a year:

Subscription outstanding: Rs. 15,000
Subscription in advance: Rs. 4000
Stock of stationery: Rs. 11,000
8% on fixed deposits of Rs. 45,000 (for which interest of 3 months is due)
Prepaid water bill: Rs. 2000
Billiards table: Rs. 20,000 (original cost Rs. 25,000)

Calculate the amount of capital fund.

  1. Rs. 89,000
  2. Rs. 94,900
  3. Rs. 89,900
  4. Rs. 97,900
  5. Rs. 85,900
← Back to Quizzes