Write the Word/Phrase/Term, which can
substitute each of the following Statements.
Question 1.
The Form of Organization providing services to the
society only.
Answer:
Not for Profit concern
Question 2.
An account which is prepared by Not for Profit
concern instead of Profit and Loss Account.
Answer:
Income and Expenditure Account
Question 3.
Donations are received for a specific purpose.
Answer:
Specific donation/Capital Receipt
Question 4.
The Receipts are not recurring in nature.
Answer:
Capital Receipt
Question 5.
An Account that records only revenue items in case
of Not a for-profit concern.
Answer:
Income and Expenditure Account
Question 6.
Accounts which records only cash transactions in
case of Not for Profit concerns.
Answer:
Receipts and Payments Account
Question 7.
The income is earned during the year but not
received during the year.
Answer:
Outstanding income
Question 8.
The credit balance of Income and Expenditure
Account.
Answer:
Surplus
Question 9.
To excess of total assets over total liabilities of a
Not for Profit concern.
Answer:
Capital Fund
Question 10.
All such receipts are non-recurring in nature and
not forming a part of a regular flow of income.
Answer:
Capital Receipts
Fill in the blanks.
Question 1.
Not for Profit organization is never engaged in
___________ activities.
Answer:
trading
Question 2.
Not for Profit organization is called ___________
organization.
Answer:
service
Question 3.
Receipts and Payments Account falls under the
category of ___________ Account.
Answer:
Real
Question 4.
In Receipts and Payment Account the summary of
___________ transactions are recorded.
Answer:
cash
Question 5.
Income and Expenditure Account is similar to the
___________ Account of Trading concern.
Answer:
Profit and Loss
Question 6.
Credit side of Receipts and Payments Account
shows cash___________
Answer:
payments
Question 7.
Income and Expenditure Account is a ___________
Account.
Answer:
Nominal
Question 8.
Mumbai University prepares ___________ Account
instead of a Profit and Loss account.
Answer:
Income and Expenditure
Question 9.
Subscription received from the members is
considered as ___________ receipts.
Answer:
revenue
Question 10.
The transactions recorded in the Income and
Expenditure Account related only to the ___________
year.
Answer:
current
Answer in one sentence only.
Question 1.
What do you mean by ‘Not for Profit’ Concern?
Answer:
A concern or organization which is formed and
established to serve its members and society or
the general public by undertaking various
activities without any profit motive is called a ‘Not
for Profit’ concern.
Question 2.
Which organizations prepare Income and
Expenditure Account?
Answer:
‘Not for profit’ concern prepares Income and
Expenditure Account.
Question 3.
What is Receipts and Payments Account?
Answer:
An account that is prepared by a ‘Not for Profit
Concern’ to record a summary of all types of cash
receipts and cash payments inclusive of bank
transactions is called Receipts and Payments
Account.
Question 4.
Why Income and Expenditure Account is prepared?
Answer:
Income and Expenditure Account is prepared to
ascertain, whether the concern has sufficient
income to meet its expenses, or not.
Question 5.
What is Capital Fund?
Answer:
Excess of Assets over Liabilities is known as
Capital Fund which also consists of contributions,
subscription, entrance fees, surplus income, etc.
Question 6.
What is a Subscription?
Answer:
Subscription is the periodical payment made by the
members to the ‘Not for Profit’ concern for
maintaining their membership.
Question 7.
What is ’Legacy’?
Answer:
Any asset, property, or amount of cash which ‘Not
for Profit’ concern receives as per the provisions
made in the will of the donor after his death is
called Legacy.
Question 8.
What is Surplus?
Answer:
Excess of income over expenditure shown by
Income and Expenditure Account represents
Surplus for the financial year.
Question 9.
What do you mean by Non-recurring Expenses?
Answer:
Non-recurring expenses are the expenses that are
made for the acquisition of fixed assets that gives
benefits for a long period.
Question 10.
To which account ‘Surplus’ or ‘Deficit’ is
transferred?
Answer:
‘Surplus’ or ‘Deficit’ is transferred to the Balance
Sheet by adding it or subtracting it from Capital
Fund.
