Advertisements
Advertisements
प्रश्न
Select the most appropriate answer from the alternatives given below and rewrite the sentence.
An Income and Expenditure Account and a Balance sheet is prepared as final accounts by a ______________ .
विकल्प
‘Not for Profit’ Concern
Trading Concern
Commercial Organisation
Public Limited Company
उत्तर
An Income and Expenditure Account and a Balance sheet is prepared as final accounts by a Not for Profit Concern.
Explanation: Certain organisations are formed not to earn profits but to render services to their members or to society at large. For example, schools, clubs, hospitals etc. The primary motive of such organisations is to provide service. At the end of the accounting year, non-profit organisations (NPO) prepare Income and Expenditure Account and Balance Sheet to ascertain the financial performance (i.e. surplus or deficit) and the financial position.
In case of profit seeking entities, i.e. commercial organisations, public limited companies or trading concerns, Profit and Loss Account is prepared to ascertain the profit earned or loss incurred during the year and Balance Sheet is prepared to know the financial position of the business.
APPEARS IN
संबंधित प्रश्न
Following is the Balance Sheet and Receipts and Payments Account of the Sevagiri Hospital, Satara.
Prepare Income and Expenditure account for the year ended on 31 st March, 2013 and Balance Sheet as on that date :
Balance Sheet as on 1st April, 2012
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
| Capital fund | 1000000 | Cash in hand | 6000 |
| Outstanding Salaries | 22000 | Cash at bank | 30000 |
| Medical bill unpaid | 6000 | Land and building | 800000 |
| Furniture | 70000 | ||
| Equipments | 120000 | ||
| Outstanding Subscription | 2000 | ||
| 1028000 | 1028000 |
Receipts and Payments Account for the year ending 31.03.2013
| Dr. | Cr. | ||
| Receipts | Amount (Rs.) | Payments | Amount (Rs.) |
|
To Balance b/d Cash in hand Cash at bank |
6000 30000 |
By Salaries (including of previous year) |
110000
|
|
To Subscription (includes 2000 received for previous year) |
130000
|
By Medicines | 48000 |
|
To Sale of old furniture (book value Rs. 30000) |
20000
|
By Equipment purchased | 20000 |
|
To Donations (revenue) |
44000
|
By Taxes | 3000 |
| To Life membership fees | 25000 | By General expenses | 8600 |
|
By Balance c/d Cash in hand Cash at bank |
15400 50000 |
||
| 255000 | 255000 |
Consider the following adjustments :
- Outstanding subscription Rs. 15,000.
- Capitalise the amount of life membership fees.
- Pre-paid taxes Rs. 500.
- Outstanding salary Rs. 12,000.
- Write off depreciation Rs. 20,000 from land and building and Rs. 30,000 from equipments.
- Outstanding medicine bill as on 01.04.2012 is still due.
| Balance Sheet as on 1st April 2007 | |||
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Entrance Fees | 6,000 | Furniture | 16,800 |
| Capital Fund | 1,03,800 | Laboratory | 20,000 |
| Library | 25,000 | ||
| Investment | 40,000 | ||
| Cash in hand | 1,000 | ||
| Cash at bank | 3,000 | ||
| Outstanding Tuition Fees | 4,000 | ||
| 1,09,800 | 1,09,800 | ||
| Receipts and Payments Account for the year ended 31st March 2008 | |||
| Receipts | Amount (Rs) | Payments | Amount (Rs) |
| To Balance b/d | By Furniture Purchased | 5,400 | |
| Cash in hand | 1,000 | By Salaries | 60,000 |
| Cash at bank | 3,000 | By Rent | 28,000 |
| To Tuition Fees | 80,000 | By Sundry Expenses | 15,200 |
| To Term Fees | 26,200 | By Annual Gathering Expenses | 11,300 |
| To Government Grant | 16,000 | By Insurance | 4,000 |
| To Donation of Library | 30,000 | By Closing Balance | |
| To Interest on Investment | 2,000 | Cash at bank | 34,300 |
| 1,58,200 | 1,58,200 | ||
Adjustments:
1. Tuition fees still receivable are Rs. 10,000.
2. Salaries still payable are Rs. 30,000
3. An insurance premium is paid for one year ending 30.9.2008.
4. Rent paid in advance Rs. 4,000.
5. Depreciate furniture and library at 10%.
Depreciation to be charged on the closing balances of the assets.
With the help of the Balance Sheet and Receipts and Payments Accounts of Adarsh Cultural Club, Mumbai, prepare Income and Expenditure Account for the year ended 31st March, 2013 and the Balance Sheet as on that date :
Balance Sheet as on 01.04.2012
| Liabilities | Amount | Assets | Amount |
| Capital fund | 2,57,000 | Buildings | 2,50,000 |
| Building fund | 50,000 | Furniture | 20,000 |
| Outstanding salary | 1,300 | Outstanding Subscription | 1,000 |
| Cash in hand | 2,400 | ||
| Cash at bank | 34,900 | ||
| 3,08,300 | 3,08,300 |
Receipts and Payments Account for the year ending 31.03.2013
| Receipts | Amount | Amount | Payments | Amount | Amount |
| To Balance b/d | By Salaries | 35,300 | |||
| Cash in hand | 2,400 | By Furniture (Purchased on01.10.2012) |
10,000 |
||
| Cash at bank | 34,900 | By General expenses | 8,400 | ||
| To Subscriptions | By Printing and stationery | 4,200 | |||
| 2011–12 | 1,000 | By Drama expenses | 16,000 | ||
| 2012–13 | 48,000 | By Balance c/d | |||
| 2013–14 | 2,000 | 51,000 | Cash in hand | 4,600 | |
| To Donations for | Cash at bank | 57,800 | |||
| building fund | 20,000 | ||||
| To Drama receipts | 28,000 | ||||
| 1,36,300 | 1,36,300 |
You are also required to consider the additional information given below:
(1) The club had 100 members, each paying 500 as annual subscription.
(2) Furniture to be depreciated at 20 % p.a.
(3) Salaries include Rs .1,300 paid for outstanding salaries for the year 2011‐12.
Salaries outstanding for the year 2012‐13 were 700.
Expenditure on purchase of a building is a _____.
Following is the Receipts and Payments Account and additional information of Kalpana Hospital, Sakri.
|
Receipts and Payments Account for the year ended on 31st March, 2010 |
||||||
|
Dr. |
Cr. |
|||||
|
Receipts |
Amount |
Payments |
Amount |
|||
|
To Balance b/d |
6,000 |
By Medicines |
10,000 |
|||
|
To Subscriptions: |
|
By Honorarium to Doctors |
75,000 |
|||
|
2008-2009 |
7,500 |
|
By Ambulance Maintenance |
44,000 |
||
|
2009-2010 |
95,000 |
|
By Hospital Equip. purchased |
30,000 |
||
|
2010-2011 |
15,000 |
1,17,500 |
By Furniture purchased |
25,000 |
||
|
To Donations |
55,000 |
By Fixed Deposits |
1,00,000 |
|||
|
To Life Membership Fees |
25,000 |
By Balance c/d (31.3.10) |
69,500 |
|||
|
To Hospital Receipts (Revenue) |
1,50,000 |
|
|
|||
|
|
3,53,500 |
|
3,53,500 |
|||
Additional Information:
(1) Outstanding subscription for 2009-2010 is amounted to Rs. 5,000.
(2) Hospital equipments and furniture were purchased on 1.10.2009 and both were to be depreciated at 20% p. a.
(3) Life membership fees are to be capitalized.
(4) Donations represent donations for Building fund.
(5) Staff salary for the current year is outstanding Rs. 7,500.
(6) On 1.4.2009, the hospital had the following assets and liabilities:
Land Rs. 2,50,000, Investments Rs. 50,000, Ambulance Rs. 1,02,500, Bank Loan Rs. 2,00,000.
(7) Capital Fund as on 1.4.2009 was amounted to Rs. 2,16,000.
Prepare: Income and Expenditure Account for the year ending 31st March, 2010 and the Balance Sheet as on that date.
Income and Expenditure Account includes items of ____ nature only.
Following is the summary of Receipts and Payments of Jay Bajrangbali Vyayam Shala, Ajara for the year ending on 31.03.2007.
|
Receipts and Payments Account For the year ended on 31st March 2007 |
|||||
|
Dr. |
|
Cr. |
|||
|
Receipts |
Amount |
Payments |
Amount Rs. |
||
|
To Balance b/d To Subscription 2005-06 2006-07 To Donation for Building To Receipts from Entertainments To Interest To Entrance fees |
41,600
4,120 1,60,000 50,000
36,440 3,240 45,000 |
By Salary By Lighting By General Expenses By Entertainments Expenses By Taxes Paid By Printing and Stationery By Expenses paid of 2005-06 By Investment By Fixed Deposit with Ajara Urban Bank By Balance c/d |
55,000 10,000 15,360 25,800 5,000 9,440 24,000 1,20,000 40,000
35,800 |
||
|
Total |
3,40,400 |
Total |
3,40,400 |
||
1. Jay Bajrangbali Vyayam Shala has 4500 members paying annual subscription of Rs. 40 each.
2. Provide for outstanding salary Rs. 5,000.
3. On 1.4.2006 the assets stood as under:
|
(a) |
Land and Building |
Rs. 60,000 |
|
(b) |
Furniture |
Rs. 46,000 |
Depreciate the above assets at 10% p. a.
5. Capital Fund was Rs. 1,27,720 on 1.4.2006.
6. 50% of the entrance fees is to be capitalized.Prepare: Income and Expenditure Account for the year ended 31st March, 2007 and Balance Sheet as on that date.
Answer in one sentence only.
Which receipts are called capital receipts?
Answer in one sentence only.
What is legacy?
Answer in one sentence only.
What is ‘Deficit’?
Write one Word / Term / Phrase for the following statement.
An Account, which is prepared by ‘Not for Profit’ concern, instead of Profit and Loss Account.
Write one Word / Term / Phrase for the following statement.
Excess of income over expenditure.
Write one Word / Term / Phrase for the following statement.
A statement showing the financial position of a concern on a particular date.
Select the most appropriate answer from the alternatives given below and rewrite the sentence.
Excess of income over Expenditure is termed as _________________.
Select the most appropriate answer from the alternatives given below and rewrite the sentence.
‘Not for Profit’ Concerns prepare _________________ Account instead of Profit and loss Account.
State whether the following statement is True or False.
In the Income and Expenditure Account, all incomes received during the year irrespective of the year for which they are received, are to be recorded.
State whether the following statement is True or False.
The final balancing amount of Income and Expenditure Account represents either surplus or Deficit.
State whether the following statement is True or False.
Receipts and Payments Account do not have any opening balance.
|
LIABILITIES
|
AMOUNT
|
ASSETS
|
AMOUNT
|
|
Capital Fund
|
502000
|
Cash in Hand
|
3000
|
|
Medical bill Unpaid
|
3000
|
Cash at Bank
|
6000
|
|
Land and Building
|
400000
|
||
|
Furniture
|
35000
|
||
|
Equipments
|
60000
|
||
|
Outstanding Subscription
|
1000
|
||
|
505000
|
505000
|
|
Receipts
|
Amount
|
Payments
|
Amount
|
|
To balance b/d
|
By Salaries
|
55000
|
|
|
Cash in Hand
|
3000
|
By Medicines
|
26000
|
|
Cash at Bank
|
6000
|
By Equipment purchased
|
10000
|
|
To Subscription
[Includes Rs. 1000 received for previous year]
|
65000
|
By General Expenses
|
4300
|
|
To Sale of Old Furniture
[Book value Rs. 15000]
|
10000
|
By Balance c/d
|
|
|
To Donations (Revenue)
|
22000
|
Cash in Hand
|
7700
|
|
To Life Membership Fees
|
12500
|
Cash at Bank
|
15500
|
|
118500
|
118500
|
Following is the balance sheet as on 1.4.2012 and receipts and payments accounts of mahakavi kalidas Library , Nashik . Balance sheet as on 31st March 2013.
Balnce sheet as on 01.04.2012
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Capital fund | 690000 | Furniture | 72500 |
| Expenses due | 7000 | Books | 551000 |
| Investment in securities | 50000 | ||
| Cash in hand | 8500 | ||
| Cash in Bank | 15000 | ||
| 697000 | 697000 |
Receipts and Payments for the year ending 31st March ,2013
Dr. Cr.
| Receipts | Amount (₹) | Payments | Amount (₹) |
| To Balance b/d | By electricity charges | 6980 | |
| Cash in hand | 8500 | By postage and telegram | 6100 |
| Cash in bank | 15000 | By Purchase of books | 80000 |
| To member's subscriptions | 180000 | By Payment of expenses due | 7000 |
| To Entrance fees | 25000 | By Sundry expenses | 10500 |
| To Sales of old newspapers | 1500 | By Investment in securities | 100000 |
| To Hire of lecture hall | 18000 | By Furniture | 28000 |
| To Interest on securities | 4000 | By Balance c/d | |
| Cash in hand | 6420 | ||
| Cash in bank | 7000 | ||
| 252000 | 252000 |
Adjustments:
(1) During the current year , furniture was purchased on 1.10.2012. Depreciation furniture @ 10 % p.a.
(2) Depreciate books by ₹ 100000
(3) Membership subscription received during the year includes ₹ 15000 , for the year 2013 - 14 and ₹ 7500 , are outstanding for current year.
(4) Capitalised half (1/2) of the entrance fees.
Prepare : Income and Expenditure account for the year ended 31st March 2013 and Balance sheet as on 31st march , 2013.
