CBSE Class 12: Accountancy - Chapter 1: Not For Profit Organisations (NPOs) Questions and Answers - (Part 2) (#eduvictors)(#cl12Accountancy)

Chapter 1: Not For Profit Organisations (NPOs) Part-2

Questions and Answers - (Part 2)

CBSE Class 12: Accountancy 

Q1: Define honorarium. How is it shown in income and expenditure account? 

Answer: It is the amount paid to the person(outsider) to reimburse the actual expenses incurred for delivering a lecture or giving his performance as an artist. It will be treated as revenue expenditure.

It is shown as expenses.

Q2: What is the format of Total Subscription/Income/Expense for CY?

Answer:

1st January20..... (opening)		31st December 20.... (closing)
← Outstanding(-)	xxxxx	← Outstanding (+)	xxxxx
(+) Advance/Prepaid→	xxxxx	(-)Advance/Prepaid→	xxxxx

Q3: What is a receipts and payment account?

Answer: Receipts and Payment Account is a summary of cash and bank transactions. It gives the summarized picture of various receipts and payments. It includes receipts of all nature (Capital, Revenue, Current year, previous year and next year) It does not show non-cash items. It starts with opening balance of cash and bank and ends with cash balance and bank / bank overdraft balance.

Q4: What is the format of receipts and payment account?

Answer:

Receipts	Amount	Payments	Amount
		Balance b/d
Balance b/d		Cash at Bank(overdraft)	xxxx
Cash in hand	xxxx	Capital payments:	xxxx
Cash at bank	xxxx	Building construction	xxxx
Capital Receipts	xxxx	Sports equipments or materials	xxxx
Legacies	xxxx	Cost of leasehold land	xxxx
Sale of office furniture	xxxx	Investments	xxxx
Sale of sports equipments	xxxx	Advance for purchase of buildings	xxxx
Donations for special purposes	xxxx	Government's loan	xxxx
e.g., building, prizes etc	xxxx	Furniture	xxxx
Life membership fees	xxxx	Revenue payments	xxxx
Sale of investments	xxxx	Prizes paid	xxxx
Endowment fund receipts	xxxx	Entertainment expenses	xxxx
Receipt on account of special funds e.g., Prize fund, tournament fund etc	xxxx	Printing and stationery Newspapers and periodicals	xxxx
Interest on specific fund	xxxx	Repairs	xxxx
Investments	xxxx	Postages	xxxx
Entrance fees	xxxx	honorarium	xxxx
Revenue Receipts	xxxx	Expenses on special food to patients	xxxx
Subscriptions	xxxx	Insurance, rent, salaries	xxxx
General donations	xxxx	Advertisement	xxxx
Proceeds from entertainments	xxxx	Audit fee	xxxx
Interest or dividends	xxxx
sale of old newspapers, waste papers etc.	xxxx	Telephone, electric charge	xxxx
Miscellaneous receipts	xxxx	Gardening	xxxx
Cash at bank (Bank overdraft)	xxxx	Bar expenses Up-keep of lawns Municipal taxes Charity Printing of year book Drawings Balance c/d (closing balance) Cash in hand Cash at bank	xxxx xxxx xxxx xxxx xxxx xxxx xxxx xxxx

Note: Note: There will be either or the two amounts i.e., bank overdraft or cash at bank and not both.

Q5: From the following particulars taken from the cash book of a health club, prepare receipts and Payments account

Particulars	₹
Opening balance
Cash in hand	5,000
Cash at bank	25,000
Subscriptions	1,65,000
Donations	35,000
Investments purchased	80,000
Rent Paid	20,000
General expenses	21,500
Postage and stationery	2,000
Courier Charges	1,000
Sundry Expenses	2,500
Closing Cash in Hand	12,000

Answer:  Receipts and Payments account for the year ending...

Receipts	<	Payments	<
To Balance b/d		By Investment purchased	80,000
Cash	5,000	By rent paid	20,000
Bank	25,000	By general expenses	21,500
To Subscriptions	1,65,000	By postage and stationery	2,000
To Donations	35,000	By courier charges	1,000
		By sundry expenses	2,500
		By Balance c/d cash	12,000
		bank	91,000
	2,30,000		2,30,000

☛See Also:
Accountancy Sample Question Paper (2015)
Accountancy Sample Question Paper with Marking Scheme (2016)
Accountancy Sample Question Paper (2017-18)
Accountancy Sample Question Paper + Marking Scheme (2018-19)
Accountancy Sample Question Paper (+ MS) Set -1 (2019-2020)
Accountancy Basics of Partnership (Short Q & A)
Accountancy Chapter 1: Not For Profit Organisations (NPOs) Q & A Part-1