Book- Keeping and Accountancy
STANDARD XII
Chapter 2. Accounts of ‘Not for Profit’ Concerns
Page No. in book (113)
Answer in one sentence only.
1. What do you
mean by ‘Not for Profit Concern’?
Ans. Not-for-profit
organizations are types of organizations that do not earn profits for its
owners. All of the money earned by or donated to a not-for-profit organization
is used in pursuing the organization's objectives and keeping it running.
2. Which
organizations prepare Income and Expenditure Account?
Ans. The Not-for-Profit Organisations
usually prepare the Income and Expenditure Account and a Balance Sheet with the
help of Receipt and Payment Account.
3. What is
Receipts and Payments Account?
Ans. A receipts and payments account is a summary
of actual cash receipts and payments extracted from the cash book over a
certain period.
4. Why Income and
Expenditure Account is prepared?
Ans. The receipts and payments account summarizes
receipts and payments made by a non-trading concern during a particular period
of time (usually one year). Its is used to prepare income and expenditure
account of non-trading concerns.
5. What is
Capital Fund?
Ans. the excess of assets over the liabilities for
a profit earning organisation is termed as capital and the same for an Non-Proft organistion is termed
as capital fund.
6. What is
Subscription?
Ans. A subscription is a signed agreement between a
supplier and customer that the customer will receive and provide payment for regular products or
services, usually for a one-year period.
7. What is
Legacy?
Ans. The term "legacy" literally means
something that has existed for a long period of time.
8. What is
Surplus?
Ans. A surplus refers to the amount of retained
earnings recorded on an entity's balance sheet; a surplus is considered to be
good, since it implies that there are excess resources available that can be
used in the future.
9. What do you
mean by Non Recurring Expenses?
Ans. Unusual charge, expense, or loss that is
unlikely to occur again in the normal course of a business is called as Non Recurring Expenses.
10. To which
account Surplus or Deficit is transferred?
Ans. Surplus or Deficit is transferred to Current
Account.
Telegram Group
Mumbai Univeersity :- https://t.me/mumbaiuniversityidol
Suraj Patel Education :- https://t.me/surajpateleducation
S.S.C EXAM:- https://t.me/joinchat/wIOptdUxh8A3YWU1
F.Y.J.C EXAM :- https://t.me/FYJCexam
S.Y.J.C EXAM :- https://t.me/SYJCexam
F.Y EXAM :- https://t.me/fyexam
S.Y EXAM :- https://t.me/syexam
T.Y EXAM :- https://t.me/tyexam
M.Com Part 1 EXAM :- https://t.me/McomPart1Exam
M.Com Part 2 EXAM :- https://t.me/McomPart2Exam
M.A EXAM :- https://t.me/mastudentsexam