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12th Accountancy - Accounts of Not-For-Profit Organisation Model Question Paper

Published on: 27/09/2019

Accounts of Not-For-Profit Organisation

Download Tamil Nadu 12th Standard Accountancy question papers, model tests, one-mark questions, important questions, and public exam papers in PDF format. Free study materials and answer keys for TN State Board students.

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Std: 12th Standard - Accountancy

chapter: - Model Question paper

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Questions:

Generic 3

4 x 3 = 12

Compute income from subscription for the year 2018 from the following particulars relating to a club

Particulars	1.1.2018 Rs.	31.12.2018 Rs.
Outstanding subscription	3,000	5,000
Subscription received in advance	4,000	7,000

Subscription received during the year 2018: Rs.45,000.

What is income and expenditure account?

From the following particulars, show how the item ‘subscription’ will appear in the Income and Expenditure Account for the year ended 31-12-2018?
Subscription received in 2018 is Rs.16,000 which includes Rs. 3,000 for 2017 and Rs. 5,000 for 2019.
Subscription outstanding for the year 2018 is Rs. 4,000. Subscription of Rs.2,000 was received in advance for 2018 in the year 2017.

From the following particulars of Tamil Educational Society, prepare Receipts and Payments account for the year ended 31^st March, 2019.

Particulars	Rs.	Particulars	Rs.
Opening cash balance as on 1.4.2018	18,000	Building purchased	2,10,000
Rent paid	6,000	Staff salary	55,000
Scholarship given	15,200	Subscription received	2,65,000
Entrance fees received	18,500

Generic 5

5 x 5 = 25

From the following receipts and payments account of Tenkasi Thiruvalluvar Manram, prepare income and expenditure account for the year ended 31^st March, 2019.
Receipts Rs. Payments Rs. To Balance b/d By Salaries 20,000 Cash in hand 14,000 By Rent 24,000 To Interest received 5,000 By Travelling expenses 2,000 To Subscription 55,000 By Printing and stationery 6,000 To Legacies 48,000 By Investments made 50,000 To Entrance fees 7,000 By Sports equipment purchased 33,000 To Sale of furniture 16,000 By Balance c/d (Book value: Rs.7,000) Cash in hand 10,000 1,45,000 1,45,000

From the information given below, prepare Receipts and Payments account of Coimbatore Cricket Club for the year ending 31st March, 2019.

Particulars	Rs.	Rs.	Particulars	Rs.
Bank overdraft (1.4.2018		6,000	Honorarium paid	2,800
Cash in hand (1.4.2018)		1,000	1,000	700
Wages paid for ground maintenance		2,000	Match expenses	2,600
Subscription received:			Sports material purchased	1,900
Previous year	500		Match fund receipts	5,200
Current year	9,600		Legacies received	2,000
Subsequent year	400	10,500	Cash balance (31.03.2019)	300
Wages yet to be paid		2,200	Donation received for pavilion	2,000
Interest on loan paid		2,000

State the differences between Receipts and Payments Account and Income and Expenditure Account

Following is the Receipts and Payments Account of Salem Recreation Club for the year ended 31^st March, 2019
In the books of Salem Recreation Club Receipts and Payments Account for the year ended 31^st March, 2019

Dr. Cr.
Receipts	Rs.	Rs.	Payments	Rs.
To Balance b/d:			By Furniture	15,000
Cash in hand		9,000	By Stationery	2,400
To Subscriptions			By Investment	12,500
2018 – 2019	12,500		By Postage	1,000
2019 – 2020	400	12,900	By Balance c/d:
To Proceeds from entertainment		12,000	Cash in hand	3,500
To Sundry receipts		500
		34,400		34,400

Additional information:

(i) There are 450 members each paying annual subscription of Rs. 30.
(ii) Stock of stationery on 31^st March, 2018 Rs. 300 and on March 31, 2019 Rs. 500.
(iii) Capital fund as on 1^st April 2018 was Rs. 9,300.
Prepare income and expenditure account for the year ended 31^st March, 2019 and the balance sheet as on that date.

From the following particulars of Poompuhar Literary Association, prepare Receipts and Payments account for the year ended 31^st March, 2019.

Particulars	Rs.	Particulars	Rs.
Opening cash in hand as on 1.4.2018	5,000	Subscriptions received	20,000
Bank overdraft as on 1.4.2018	4,000	Repairs and renewals	2,500
Printing and stationery	1,500	Conveyance paid	2,750
Interest paid	3,250	Books purchased	10,000
Sale of investments	1,000	Insurance premium paid	4,000
Purchase of refreshments	1,500	Sundry receipts	750
Outstanding salary	2,000	Government grants received	6,000
Endowment fund receipts	2,000	Sale of refreshments	1,500
Lighting charges	1,300	Depreciation on buildings	2,000
		Cash at bank on 31.03.2019	2,000

Generic 2

5 x 2 = 10

10.

Give four examples for capital receipts of not–for–profit organisation.

11.

What is legacy?

12.

State the meaning of not–for–profit organisation

13.

How will the following appear in the final accounts of a club for the year 2017 – 2018?

Particulars	Rs.
Prize fund on 1.4.2017	60,000
Prize fund investment on 1.4.2017	60,000
Interest received on prize fund investment	6,000
Prizes distributed	8,000
Donation received for prize fund	12,000

14.

From the following details calculate the printing and stationery to be debited to Income and Expenditure Account for the year ending 31^st March, 2018 and also show how it will appear in the Balance Sheet as on 31^st March, 2018.

Particulars	Amt(Rs.)
Amount paid for stationery during 2017- 2018	Rs.1,500
Stock of stationery on 1^st April, 2017	Rs.300
Stock of stationery on 31^st March, 2018	Rs.200

Multiple Choice Question

6 x 1 = 6

15.

On what basis the receipts and payments account is prepared?

(a)

Cash basis

(b)

Credit basis

(c)

Both

(d)

None of these

16.

Income and Expenditure accounts show

(a)

cash available to an organization

(b)

dosing capital of an organization

(c)

cash available in the bank account

(d)

surplus or deficit for the current accounting period.

17.

Subscription received but not yet earned is considered as a /an _____________

(a)

Asset

(b)

Liability

(c)

Income

(d)

Expenditure

18.

Legacy is a

(a)

Revenue expenditure

(b)

Capital expenditure

(c)

Revenue receipt

(d)

Capital receipt

19.

Subscription due but not received for the current year is

(a)

An asset

(b)

A liability

(c)

An expense

(d)

An item to be ignored

20.

Receipts and payments account is a

(a)

Nominal A/c

(b)

Real A/c

(c)

Personal A/c

(d)

Representative personal account

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Answers Key:

Generic 3

4 x 3 = 12

Income expenditure A/c for the year ended 31.12.18
Particulars	Rs	Rs
By Subscription	45,000	45,000
Add: Outstanding 31.12.18	5,000
	50,000
(-) O/s sub. 1.1.2018	3,000
	47,000
(-) Subscription received in advance 31.12.18	7,000
	40,000
(+) Sub.Received. Adv. 1.1.2018	4,000	44,000

(i) Income and expenditure account is a summary of income-and expenditure of a not-for-profit organisation prepared at the end of an accounting year.
(ii) It is prepared to find out the surplus or deficit pertaining to a particular year.
(iii) It is a nominal account in nature in which items of revenue receipts and revenue expenditure, relating to the current year alone are recorded.
(iv) It is just like preparing a profit and loss account. In this account, incomes are shown on the credit side and expenses are shown on the debit side.
(v) Apart from cash items, non-cash items such as income accrued but not received, loss or gain on sale of fixed assets, depreciation, etc. will also be recorded

Dr. Income and Expenditure Account for the year ended 31st December, 2018 Cr
Income	Rs.	Rs.
By Subscription received during the year	16,000
Less: Subscription received for 2017	3,000
	13,000
Less: Subscription received for 2019	5,000
	8,000
Add: Subscription due for 2018	4,000
	12,000
Add: Received in advance in 2017 for 2018	2,000	14,000

(b) Treatment of consumable items such as sports materials, stationery items, medicines, etc.
(i) Consumable items such as sports materials, stationery, medicines, etc., consumed during the year will appear on the debit side of income and expenditure account.
(ii) Consumption = Opening stock + Purchases during the current year - Closing stock
(iii) Closing stock will appear on the assets side of the balance sheet as at the end of the year.
(iv) If there is any sale of old sports materials, etc., that will be shown on the credit side of income and expenditure account or can be subtracted from the respective items consumed on the debit side of income and expenditure account.

Dr. Receipts and Payments Account for the year ended
31^st March, 2019 Cr
Receipts	Rs.	Payments	Rs.
To Balance b/d		By Rent paid	6,000
Cash in hand	18,000	By Scholarship given	15,200
To Entrance fees	18,500	By Building purchased	2,10,000
To Subscription received	2,65,000	By Staff salary	55,000
		By Balance c/d
		Cash in hand	15,300
	3,01,500		3,01,500

Generic 5

5 x 5 = 25

Dr In the books of Tenkasi Thiruvalluvar Manram Income and Expenditure Account for the year ended 31^st March, 2019 Cr Expenditure Rs Income Rs To Rent 24,000 By Interest received 5,000 To Travelling expenses 2,000 By Subscription 55,000 To Salaries 20,000 By Entrance fees 7,000 To Printing and stationary 6,000 To Loss on sale of furniture 1,000 To Surplus 14,000 (Excess of income over penditure) 67,000 67,000

Dr In the books of Coimbatore Cricket Club Receipts and Dr. Payments Account for the year ended 31st March 2019 Cr.
Receipts	Rs.	Rs.	Payments	Rs.
To Balance bid			By Balance bid
Cash in hand		1,000	Bank overdraft	6,000
To Subscription received			By Wages paid	2,000
Previous year	500		By Interest on loan	2,000
Current year	9,600		By Honorarium paid	2,800
Subsequent year	400	10,500	By Water and electricity charges	700
			By Match expenses	2,600
To Match fund receipts		5,200	By Balance c/d
To Legacies received		2,000	Cash in hand	300
To Donation received		2,000	Cash at bank	2,400
		20,700		20,700

[Hint: Wages yet to be paid is a non cash item. Hence it is excluded in receipts and payments account

S.NO.	Basis	Receipts and Pa ments Account	Income and Expenditure Account
1.	Nature of account	It is a real account. Cash receipts are recorded on the debit side and cash payments are recorded on the credit side.	It is a nominal account. Expenses are recorded on the debit side and incomes are recorded on the credit side.
2.	Basis of accounting	It is based on cash system of accounting. Non-cash items are not recorded	It is based on accrual system of accounting. Non-cash items like outstanding expenses, depreciation etc. are also recorded
3.	Opening and closing balance	It commences with an opening balance of cash and bank and ends with closing balance of cash and bank.	There is no opening balance. It ends with surplus or deficit.
4.	Nature of items	It contains actual receipts and payments irrespective of revenue or capital items in nature	It contains only revenue items,that is, only revenue expenses and revenue incomes.
5.	Period	All cash receipts and payments made during the year pertaining to the past period, current period and subsequent period are recorded	It contains only the items relating to the current period

Calculation of subscription to be received for the year 2018-19:

	Rs.
Subscription for the current year (450 ×Rs.30)	13,500
Subscription received for the current year	12,500
Subscription outstanding for the current year
(Rs.13,500 – Rs.12,500)	1,000

In the books of Salem Recreation Club Dr. Income and Expenditure Account for the year ended 31^st March, 2019 Cr.
Expenditure	Rs.	Rs.	Income	Rs.	Rs.
To Stationery	2,400		By Subscription	12,500
Add: Opening stock	300		Add: Outstanding for
	2,700		2018-19	1,000
Less: Closing stock	500	2,200	(450 × Rs.30)		13,500
To Postage		1,000	By Proceeds from		12,000
To Excess of income			entertainment		12,000
over expenditure (surplus)		22,800	By Sundry receipts		500
		26,000			26,000

Balance sheet as on 31^st March, 2019
Liabilities	Rs.	Rs.	Assets	Rs.
Capital fund	9,300		Furniture	15,000
Add: Excess of income			Investment	12,500
over expenditure (surplus)	22,800	32,100	Subscription in arrears
Subscription received in advance		400	for 2018-19	1,000
			Stock of stationery	500
			Cash in hand	3,500
		32,500		32,500

In the books of Poompuhar Literary Association
Dr. Receipts and Payments Account for the year ended 31st March, 2019 Cr
Receipts	Rs.	Payments	Rs.
To Balance b/d		By Balance b/d
Cash in hand	5,000	Bank overdraft	4,000
To Sale of investments	1,000	By Printing and stationery	1,500
To Endowment fund receipts	2,000	By Interest paid	3,250
To Subscriptions received	20,000	By Purchase of refreshments	1,500
To Sundry receipts	750	By Lighting charges	1,300
To Government grants received	6,000	By Repairs and renewals	2,500
To Sale of refreshments	1,500	By Conveyance paid	2,750
		By Books purchased	10,000
		By Insurance premium paid	4,000
		By Balance c/d
		Cash at bank	2,000
		Cash in hand	3,450
	36,250		36,250

Note: As outstanding salary and depreciation are non-cash items, both are to be excluded inreceipts and payments account.

Generic 2

5 x 2 = 10

10.

i. Life membership fees
ii. Legacies
iii. Specific donation
iv. Sale of fixed asset
v. Special funds
vi. Prize fund
vii. Tournament fund.

11.

It is the amount given to a non-trading concern as per the will. It is like a donation. It appears as the debit side of receipts and payments account. But is not treated income because it is not of recurring nature. It is a capital receipt.

12.

(i) Some organisations are established for the purpose of rendering services to the public without any profit motive.
(ii) They may be created for the promotion of art, culture, education, sports, etc. These organisations are called not-for-profit organisation.
(iii) Charitable institutions, educational, institutions, cultural societies, sports and recreation clubs, hospitals, libraries and literary associations are some of the examples of not-for-profit organisations.

13.

Balance sheet as on 31^st March, 2018
Liabilities	Rs.	Rs.	Assets	Rs.
Prize fund	60,000		Prize fund
Add: Interest received on			investment	60,000
prize fund investment
Add: Donation for prize
fund	12,000
	78,000
Less: Prizes distributed	8,000	70,000