Micheal Vaz solutions for Book Keeping and Accountancy [English] 12 Standard HSC Maharashtra State Board chapter 7 - Accounts of 'Not For Profit' Concerns [Latest edition]

Answer in one sentence only.

What do you mean by ‘Not for Profit’ Concern?

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What is Capital Fund?

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Which receipts are called capital receipts?

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What is deferred revenue expenditure?

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What do you mean by recurring expenses?

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What is legacy?

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What does ‘surplus’ mean?

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What do you mean by subscription?

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What is an Entrance Fee?

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Which receipts are called ‘Revenue Receipts?

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What is ‘Deficit’?

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What do you mean by non-recurring expenses?

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.

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The income which is earned during the year, but it has not been received during the year.

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Such concerns, which are formed for rendering some useful services to its members without having profit motive.

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Excess of income over expenditure.

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Excess of expenditure over income

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A fund created out of a specific amount earmarked, gifted, or donated and the income of this fund is to be used for a specific purpose.

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The fees paid by a person, who wants to become a member of the concern, for his whole life.

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All such receipts which are non-recurring in nature and not forming a part of regular flow of income.

Write one Word / Term / Phrase for the following statement.
A statement showing the financial position of a concern on a particular date.

Income and Expenditure Account is a ________ Account.

Select the most appropriate answer from the alternatives given below and rewrite the sentence.
For a sports club, expenditure on the purchase of sports Machinery/Equipment is a ______________ expenditure.

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‘Outstanding subscription’ at the end of Accounting year represents _____________.

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.

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Purchase of stationery is an _______________ expenditure.

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Usually _______________ is a major source of revenue income for ‘Not for Profit’ concerns.

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An Income and Expenditure Account and a Balance sheet is prepared as final accounts by a ______________ .

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Non-Cash items are not recorded in_____________ 

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In case of non trading concern the excess of assets over liabilities is termed as _____________.

State whether the following statement is True or False.
‘Not for Profit’ concerns do not have profit motive.

State whether the following statement is True or False.
‘Not for Profit’ concerns concentrate their efforts on maximizing their profit.

State whether the following statement is True or False.
Every year, ‘Bal Vikas Mandir’, a primary school, prepares Income and expenditure Account.

State whether the following statement is True or False with reasons.

Charitable Institutions prepare Profit and Loss Account, at the end of every financial year.

State whether the following statement is True or False.
There is no difference between Receipts and Payment Account and Income and Expenditure Account.

State whether the following statement is True or False.
All receipts are the items of revenue income.

State whether the following statement is True or False.
Income and expenditure account, prepared by ‘Not for Profit’ concerns, must be accompanied by balance sheet.

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.

(Calculation of Drugs Consumed during the year)
From the information given below calculate the amount of Drugs consumed in a hospital, during the year 2012-2013. Show its presentation in Income and Expenditure Account and Balance Sheet as on 31-03-2013.

                             (Presentation of Subscriptions only)
                               Balance Sheet as on 01/04/2012

Receipts and Payments Account for the year ending on 31-03-2013
Dr.                                                                                                          Cr.

Adjustment:
Outstanding Subscription for 2012-2013 is Rs 22,000. With the above information present the item 'Subscription’ in Income and expenditure Account and Balance sheet for the year ended on 31^st March 2013.

(Presentation of Subscriptions only)
With the information given below regarding ‘Subscription’ give accounting effects of it in the Final Accounts of a ‘Not for Profit’ concern.
    Receipts and Payments Account for year ending on 31-03-2013
Dr.                                                                                                          Cr.

Additional Information:
• Subscription received during the year, includes
• Subscriptions received for 2011-2012 Rs 17,500 and for 2013-2014 Rs 15,000
• There are 500 members of the concern and each member pays Rs 1,000 as annual subscription.
• During the year 2011-2012 subscription received for the year 2012-2013 was Rs 25,000.

(Simple Problem)
With the information given below, prepare Income and Expenditure Account and Balance sheet of Sudarshan charitable Organisation for the year ending on 31-03-2012.
Receipts and Payment Account for the year ending on 31-03-2012
Dr.                                                                                                          Cr.

Additional Information:
1) There are Rs 800 members, paying annual subscription Rs 100 each.
2) Outstanding salary Rs 2,000.
3) The Assets on 01-04-2012 were as following:
Furniture Rs 40,000, Investment Rs 20,000, Land Rs 1,00,000
4) On 01-04-2012 Capital Fund was Rs 2,05,500

(Newly started Associations)
Following is the Receipts and Payments Account of Bavdhan Pensioners Association newly started on 01.04.2010.
  Receipts and Payment Account for the year ending on 31-03-2011
Dr.                                                                                                          Cr.

Adjustments:
1) Outstanding Subscription for current year Rs 10,000.
2) Entrance Fees are to be capitalized.
3) ‘Capital Fund’ should be created out of Entrance Fees and Surplus of the current year’.
4) Depreciate Furniture by Rs 2,500.
You are required to prepare Income and Expenditure Account for the year ending on 31/03/2011 and Balance Sheet as on that date.

(Only Income and Expenditure Account)
The following is the Receipts and Payments Account of Star Citizen’s Association, Bilaspur for the year ending on 31/03/2012
Receipts and Payment Account for the year ending on 31/03/2012
 Dr.                                                                                                    Cr. 

Adjustments:
1) Outstanding Picnic Receipts Rs 4,250.
2) Furniture was purchased on 01/10/2011 and it is to be depreciated @ 10% p.a.
3) Outstanding subscriptions for current year Rs 8,200.
4) Stock of Stationery on 01/04/2011 was Rs 650 and on 31/03/2012 was Rs 1,150.
5) Entries amount of legacies and 50% of Donations are to be capitalized.
With the above information, you are required to prepare Income and Expenditure Account for the year ending on 31/03/2012.   

From the following information supplied to you, prepare Income and Expenditure Account for the year ending on 31/03/2013 and Balance Sheet as on that date for Suryodaya Club, Nasik.
                        Balance Sheet as on 01/04/2012

     Receipts and Payments Account for the year ending 31.03.2013
Dr.                                                                                                         Cr.

Adjustments:
1) Subscriptions received, includes Rs 3,000 for 2011-2012 and Outstanding Subscriptions for 2012-2013 was Rs 8,000.
2) Salary Paid includes Rs 2,000 Paid for last year
3) On 31/03/2013, Prepaid Insurance Premium was Rs 3,000
4) Admissions Fees are to be capitalized.
5) Depreciate Furniture by Rs 2,000.

(Accounting of a School)
From the information given below of Jeevan Vikas Vidyalaya Khamgaon, You are required to prepare, Income and Expenditure Account and Balance Sheet for the year ending on 31.03.2011.
                                Balance Sheet as at 01.04.2010

 Receipts and Payments Account for the year ending 31.03.2011
Dr.                                                                                                      Cr.

Adjustments:
1) Tuition Fees Outstanding Rs 13,500
2) Outstanding Interest on Loan Rs 60,000
3) Entire admission Fees are to be Capitalized.
4) Depreciation is to be written off as under:

(Accounts of a Charitable Hospital)
Following information has been provided by “Janseva Charitable Hospital”, Latur. You are required to prepare Income and Expenditure Account for the year ending on 31/03/2013 and Balance Sheet as on that date.
                            Balance Sheet as on 01/04/2012

Receipts and Payments Account for the year ending 31.03.2013
Dr.                                                                                                     Cr.

Adjustments:
1) On 31/03/2013 stock of Drugs was valued Rs 20,000.
2) Depreciate Building @ 5% p.a. and Ambulance by Rs 20,000
3) Life Membership Fees are to be capitalized.

Following is the accounting information for the year 2009-2010 of Cricket Club, Pune, You are required to prepare Income and Expenditure Account as on 31.03.2010 and Balance Sheet as on that date.
                                 Balance Sheet as on 01.04.2009 

Receipts and Payments Account for year ending on 31-03-2010
Dr.                                                                                                         Cr.

Adjustments:
1) Donation are received for Building Fund.
2) Entrance Fees are to be Capitalized.
3) Outstanding Subscription Rs 1,500.
4) Depreciate sport Material @ 12 1/2% p.a.

From the following Receipts and Payments Account of Nanasaheb Patil Engineering College, Faizpur for the year ending 31 March 2013 and additional information, Prepare Income and Expenditure Account for year ending 31/03/2013 and a Balance Sheet as on that date.

Receipts and Payments Account for the year ending 31.03.2013

Dr.                                                                                                      Cr.

Additional Information:

1)

2) 50% of Donations are for Building Fund and the balance is to be treated as revenue income.
3) Outstanding Subscription Rs 4,200.
4) Life Membership Fees are to be capitalized.