Tag: accounting for not-for-profit organisation

Questions Related to accounting for not-for-profit organisation

Which of the following items should be entered in the Receipts and Payment Account of a club ?
1. Sale of old newspapers.
2. Loss in sale of some assets.
3. Payments for investments.
Select the correct answer from the codes given below:

book keeping and accountancy accounting for not-for-profit organisation accounting record of non-trading organisations features of not-for-profit organisation meaning and characteristics of not-for-profit organisation

  1. 1 , 2 and 3

  2. 1 and 3

  3. 1 and 2

  4. 2 and 3

Show answer
Correct Option: B
Explanation:

Receipts and payments account records the inflow and outflow of cash during a period. 

1. Sale of old newspapers is a routine activity which results in inflow of cash, hence should be entered in the receipts and payments account.
2. Loss in the sale of some assets do not result in flow of cash, hence should not be entered.
3. Payments for investments require outflow of cash, hence should be entered in the receipts and payments account.

Receipt and Payment account includes all receipts and payments whether they are of __________ nature or of _________ nature.

book keeping and accountancy accounting for not-for-profit organisation accounting record of non-trading organisations features of not-for-profit organisation meaning and characteristics of not-for-profit organisation

  1. Cash, Non-cash

  2. Capital, Revenue

  3. Fixed, Fluctuating

  4. Deferring, Non-deferring

Show answer
Correct Option: B
Explanation:

Receipt and Payment account is the summary of cash and bank transactions which helps in preparation of Income and Expenditure account. All receipts and payments whether of capital or revenue nature are included in Receipt and Payment account. This is one of the salient feature of Receipt and Payment account.

A Club is of 100 members Subscription per member is Rs. 2,500 p.a. 2,18,000 received during the year 2016-2017 which includes 20,000 and 15,000 subscription for the years 2015-2016 and 2017-2018 respectively. At the end of the year 2016- 2017, the amount of outstanding subscription will be ____________.

book keeping and accountancy accounting for not-for-profit organisation accounting record of non-trading organisations features of not-for-profit organisation meaning and characteristics of not-for-profit organisation

  1. Rs. 32, 000

  2. Rs. 52, 000

  3. Rs. 36, 000

  4. Rs. 67, 000

Show answer
Correct Option: D
Explanation:

Subscription Received during the year = 2,18,000
Less : Received for year 2015-16           = 20,000
less : Received for year  2017-18           = 15000
Subscription received for the year 2016- 17 =
2,18,000 - 20,000 - 15000 
 = 1,83,000


Total subscription = 2500* 100 = 2,50,000
Subscription Received = 1,83,000
Subscription outstanding = Rs. 67,000.

From the following particulars, calculate the amount of subscription to be credited to Income & Expenditure A/c for die year end March 2018. 

Particulars 31.3.2017 31.3.2018
Outstanding subscription 1, 500 1, 200
Subscription received in advance 900 540

A sum of Rs, 14,670 was received as subscription during the year ended 31st March 2018.

book keeping and accountancy accounting for not-for-profit organisation accounting record of non-trading organisations features of not-for-profit organisation meaning and characteristics of not-for-profit organisation

  1. 15,930

  2. 14,730

  3. 14,610

  4. 14,010

Show answer
Correct Option: B
Explanation:

Subscription Received during the year = Rs. 14,670 
less: Outstanding subscription in the beginning = Rs. 1500
less: Advance subscription in the end = Rs 540
Add: Outstanding subscription in the end = 1200
Add: Advance subscription in the beginning = 900
Amount to be credited to income and expenditure a/c = Rs. 14,730.