Tag: receipts and payments account

Quizzes (0) Questions (32)

Questions Related to receipts and payments account

Multiple choice book keeping and accountancy accounts of 'not for profit' concerns prepration of income and expenditure account accounting treatment for npo's special issues associated with accounts of non-trading concerns receipts and payments receipts and payments account financial accounting and reporting accounting procedure for not-for-profit organisations balance sheet, classification of assets and liabilities accounting records of not-for-profit organisations prepration of income and expenditure account and balance sheet

Specific donations received will appear on ____________.

  1. Debit side of Receipt & Payment A/c

  2. Asset side of the Balance Sheet

  3. Debit side of Income & Expenditure A/c

  4. Liabilities side of the Balance Sheet
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Specific donations are the amount received by organisaton as funding. The amount is not received for any work and hence has to be considered as a liability and to be recorded under liabilities head in the balance sheet.

Multiple choice book keeping and accountancy accounts of 'not for profit' concerns prepration of income and expenditure account accounting treatment for npo's special issues associated with accounts of non-trading concerns receipts and payments receipts and payments account financial accounting and reporting accounting procedure for not-for-profit organisations balance sheet, classification of assets and liabilities accounting records of not-for-profit organisations prepration of income and expenditure account and balance sheet

Rs. 1,00,000 received as the annual membership subscription. Out of this Rs. 20,000 is pertaining to the previous accounting period, whereas Rs. 10,000 is receivable at the end of the current accounting period. Calculate the amount of subscription that will be shown in the income and expenditure account for this accounting year.

  1. 80,000

  2. 90,000

  3. 1,20,000

  4. 1.00,000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Subscription amount to be shown in income and expenditure account can be calculated using the formula given below:

 $Subscription\quad amount=\quad Subscription\quad received\ \quad \quad Add:\quad Subscription\quad received\quad at\quad end\quad of\quad year\ \quad Less:\quad Outstanding\quad subscription\quad for\quad previous\quad year$
Substitute values in the above equation
$Subscription\quad amount=\quad Rs1,00,000\ \quad \quad Add:\quad Rs10,000\ \quad Less:\quad Rs20,000\quad =Rs90,000$.

Multiple choice book keeping and accountancy accounts of 'not for profit' concerns prepration of income and expenditure account accounting treatment for npo's special issues associated with accounts of non-trading concerns receipts and payments receipts and payments account financial accounting and reporting accounting procedure for not-for-profit organisations balance sheet, classification of assets and liabilities accounting records of not-for-profit organisations prepration of income and expenditure account and balance sheet

Given : Stock of stationery on Jan. 1, 2015 Rs 200; payments for stationery during 2015 Rs 1,000; and stock of stationery on Dec. 31, 2015 Rs 50.
What will be the amount posted to Income and Expenditure A/c for the year ending Dec. 31, 2015?

  1. Rs 750

  2. Rs 850

  3. Rs 1,150

  4. Rs 1,250
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Stationery amount to be shown in income & expenditure account can be calculated using the formula given below:

$Stationery\quad amount=\quad Opening\quad stock-Closing\quad stock+Payments\quad made$
Substitute values in the above equation
$Stationery\quad amount=\quad Rs200-Rs50+Rs1000\quad =Rs1,150$.

Multiple choice book keeping and accountancy accounts of 'not for profit' concerns prepration of income and expenditure account accounting treatment for npo's special issues associated with accounts of non-trading concerns receipts and payments receipts and payments account financial accounting and reporting accounting procedure for not-for-profit organisations balance sheet, classification of assets and liabilities accounting records of not-for-profit organisations prepration of income and expenditure account and balance sheet

Income and Expenditure Account records income and expenditure item of ____________________.

  1. Booth capital and revenue nature.

  2. Only capital nature.

  3. Only revenue nature.

  4. Only revenue nature related to a particular accounting period.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Income and Expenditure Account is prepared on an accrual basis. All incomes and expenses relating to the accounting year, whether they are actually received and paid or not, are taken into consideration. Expenditure is recorded on the debit side and income is recorded on the credit side. A distinction is made between capital and revenue items and only revenue items are included in this account.

Multiple choice book keeping and accountancy accounts of 'not for profit' concerns prepration of income and expenditure account accounting treatment for npo's special issues associated with accounts of non-trading concerns receipts and payments receipts and payments account financial accounting and reporting accounting procedure for not-for-profit organisations balance sheet, classification of assets and liabilities accounting records of not-for-profit organisations prepration of income and expenditure account and balance sheet

The income and expenditure account is prepared on the basis of __________ system of accounting.

  1. Basic

  2. Main

  3. Cash

  4. Mercantile
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Financial Accounting is based on dual system of accounting.Income & expenditure account is also based on this basic system of accounting.

Multiple choice book keeping and accountancy accounts of 'not for profit' concerns financial accounting and reporting prepration of income and expenditure account and balance sheet accounting procedure for not-for-profit organisations receipts and payments receipts and payments account

Subscription is paid___________.

  1. on weekly basis

  2. on daily basis

  3. on monthly basis

  4. on annual basis
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Subscription is a payment made to receive or be given access to certain services or information for a specific period of time. It is usually paid on annual basis. 

Multiple choice book keeping and accountancy accounts of 'not for profit' concerns financial accounting and reporting prepration of income and expenditure account and balance sheet accounting procedure for not-for-profit organisations receipts and payments receipts and payments account

Any donation received for a specific purpose is a ___________.

  1. Liability

  2. Assets

  3. Revenue Receipts

  4. Capital Receipts
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

If donation is received without a specific purpose, it is a revenue receipt. But if donation is received for a specific purpose, this is considered as capital receipts and all expenses incurred towards the specific purpose should be set off from this receipt.

Multiple choice book keeping and accountancy accounts of 'not for profit' concerns financial accounting and reporting prepration of income and expenditure account and balance sheet accounting procedure for not-for-profit organisations receipts and payments receipts and payments account

In case a sports fund is kept, expenses on account of sports events should be ____________.

  1. charged to sports fund

  2. charged to the income and expenditure account

  3. taken to the balance sheet on the asset side

  4. taken to the balance sheet on the liability side
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Specific funds are utilized for the specific activities only. If any sports events is organized, all expenses pertains to such event should be debited to sports fund account.

Multiple choice book keeping and accountancy accounts of 'not for profit' concerns financial accounting and reporting prepration of income and expenditure account and balance sheet accounting procedure for not-for-profit organisations receipts and payments receipts and payments account

What is Subscription?

  1. Life time fees

  2. Membership fee

  3. Cash

  4. Expence
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Subscription is an agreement to receive something for providing access to something. Membership fees is a subscription as a person pays money to become a member of an organisation and is usually paid annually. 

Multiple choice book keeping and accountancy accounts of 'not for profit' concerns financial accounting and reporting prepration of income and expenditure account and balance sheet accounting procedure for not-for-profit organisations receipts and payments receipts and payments account

According to sub-section 2 of Section 182 of the Companies Act 2013, which of the following is regarded as contribution for political purpose?

  1. Subscription given

  2. Donation given

  3. Expenditure incurred on advertiement

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

As per section 182(2) of the companies act 2013 subscription, donation given and expenditure incurred on advertisement are all regarded as contribution for political purposes.