MCQ Chapter 1 Accounting for Not-for-Profit Organisation Class 12 Accountancy

Please refer to Accounting for Not-for-Profit Organisation MCQ Questions Class 12 Accountancy below. These MCQ questions for Class 12 Accountancy with answers have been designed as per the latest NCERT, CBSE books and syllabus issued for the current academic year. These objective questions for Accounting for Not-for-Profit Organisation will help you to prepare for the exams and get more marks.

Accounting for Not-for-Profit Organisation MCQ Questions Class 12 Accountancy

Please see solved MCQ Questions for Accounting for Not-for-Profit Organisation in Class 12 Accountancy. All questions and answers have been prepared by expert faculty of standard 12 based on latest examination guidelines.

MCQ Questions Class 12 Accountancy Accounting for Not-for-Profit Organisation

Question. Income & Expenditure Account is based on
(a) Cash Accounting
(b) Accrual Accounting
(c) Government Accounting
(d) Management Accounting

Question. Which of the following is regarded as apt to show purchase of fixed asset for a non profit organisation
(a) Income & Expenditure Account
(b) Profit & Loss Account
(c) Balance Sheet
(d) None of the above

Question. Which of the following is to be recorded in an income and Expenditure Account
(a) Purchase of a fixed Asset
(b) Capital Expenditure incurred on a fixed asset
(c) Profit on the sale of a fixed asset
(d) Sale of a fixed asset

Question. The Receipt and Payment account of a Non- Profit Organisation is a
(a) Nominal Account
(b) Real Account
(c) Income Statement Account
(d) Financial Statements

Question. Which of the following is the accounting equation for a non-profit organisation?
(a) Asset= Capital + Liabilities
(b) Capital+ Liabilities= Assets
(c) Accumulated Fund+ Liabilities= Assets
(d) Liabilities= Assets + Accumulated Fund

Question. Subscription received but not yet earned is considered as
(a) Asset
(b) Liability
(c) Income
(d) Expenditure

Question. In regard to Rent expenses paid in advance of a non- profit organisation which of the following
classification is correct
(a) Expense
(b) Liability
(c) Equity
(d) Assets

Question. XYZ club has a bar that maintains a separate trading account for its trading activities. Which of the following is the treatment of profit or loss on bar trading activities?
(a) Profit or loss is directly shown in the Balance Sheet
(b) Profit or loss is to be presented in income and expenditure account
(c) Profit and loss is credited in income statement.

Question. On What basis receipts and payments account is made
(a) Cash basis
(b) Accrual basis
(c) Both Cash & Accrual basis
(d) None of the above 

Question. Deficit balance can be shown in balance Sheet as:
(a) Liability
(b) Assets
(c) Owner’s equity
(d) None of the above 

Question. Receipt and Payment account includes
(a) Revenue items
(b) Cash items
(c) Revenue & Cash items
(d) None of the above

Question. Which should be considered as capital receipt of a club
(a) Donation
(b) sale of newspaper
(c)) sale of bar items
(d) sale of furniture

Question. At the beginning of an accounting year a club has assets of Rs. 19,000 and liabilities of Rs.5,000. Rs. 1,800 is the debit balance of the income & expenditures account. The opening capital fund is
(a) Rs. 18,000
(b) Rs.11,200
(c) Rs.15,800
(d) Rs. 24,800

Question. The control of non trading concern rest in the hand of
(a) Directors
(b) managing Agents
(c) Governing body
(d) Promoters

Question. Donations received for special purpose should be
(a) Credited to a separate fund account and shown in the Balance Sheet
(b) Treated as revenue
(c) treated as revenue unless the amount is large
(d) Not recorded at all

Question. Amount received from the sale of old furniture by a club is treated as:
(a) Revenue Receipt
(b) Capital Receipt
(c) Asset
(d) liability

Question. Fixed assets fund is
(a) Endowment Fund
(b) Current restricted Fund
(c) Current unrestricted fund
(d) Meant for accounting of asses and depreciation

Question. If debit side of receipt and payment account exceeds the credit side, it represents:
(a) Deficit balance
(b) Surplus Balance
(c) Cash at Bank
(d) Bank Overdraft

Question. The opening balance of the Prize fund of a sports club was Rs.6,400. Further donations towards this fund received during the accounting year amounted to Rs.4,300. During the year, Rs. 3,500 was spent on prizes and Rs. 400 was received as interest on investment of the Prize Fund. The closing balance of the Prize fund is
(a) Rs. 1,900
(b) Rs.10,200
(c) Rs.10,600
(d) Rs.7,600 

Question. Second hand furniture worth Rs. 6,000 was purchased. It was repaired for Rs.600 and installed by workmen to whom Rs. 200 was paid as wages. The furniture should be capitalised for
(a) Rs.6,200
(b) Rs.6,800
(c) Rs. 6,600
(d) Rs. 6,000 

Question. Receipt & Payment Account shows
(a) A debit balance
(b) A credit balance
(c) Surplus or deficit
(d) Capital fund

Question. The opening balance of the Prize fund of a sports club was Rs.6,400. Further donations towards this fund received during the accounting year amounted to Rs.4,300. During the year, Rs. 3,500 was spent on prizes and Rs. 400 was received as interest on investment of the Prize Fund. The closing balance of the Prize fund is
(a) Rs. 1,900
(b) Rs.10,200
(c) Rs.10,600
(d) Rs.7,600

Question. Income and Expenditure Account is a:   
(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) Real and Nominal Account, both

Question. Which of the following is not an income?   
(a) Subscription
(b) Donation
(c) Sale of Ticket
(d) Endowment Fund

Question. If a general donation of smaller amount is received by a school, that donation will be shown in:   
(a) Liability Side
(b) Asset Side
(c) Debit side of Receipt and Payment A/c
(d) Credit side of Receipt and Payment A/c

Question. How much amount will be recorded in Income and Expenditure Account in the following case?   

Salary paid for the year ended 31st March 2020 amounted to ₹75,000.   
(a) ₹75,700
(b) ₹74,300
(c) ₹75,300
(d) ₹74,700

Question. The Receipts and Payments Account is a summary of:   
(a) Debit and Credit balance of Ledger Accounts
(b) Cash Receipts and Payments
(c) Expenses and Incomes
(d) Assets and Liabilities

Question. If there is a ‘Match Fund’, then match expenses and incomes are transferred to:   
(a) Income and Expenditure A/c
(b) Assets side of Balance Sheet
(c) Liabilities side of Balance Sheet
(d) Both Income and Expenditure A/c and to Balance Sheet

Question. Subscription received in cash during the year amounted to ₹40,000; subscription outstanding at the end of previous year was ₹1,500 and outstanding at the end of current year was ₹2,000. Subscription received in advance for next year was ₹800. The amount credited to Income & Expenditure Account will be:   
(a) ₹38,700
(b) ₹39,700
(c) ₹40,300
(d) ₹41.300

Question. Receipts and Payments Account is a:   
(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) Real and Nominal Account, both

Question. How much amount will be shown in Income and Expenditure Account in the following case? 

Payment made for medicines during 2019-20 was ₹2,5 0,000.   
(a) ₹2,53,000
(b) ₹2,47,000
(c) ₹2,57,000
(d) ₹2,43.000

Question. Amount received from sale of grass by a club should be treated as:   
(a) Capital Receipt
(b) Revenue Receipt
(c) Asset
(d) Earned Income

Question. Source of income for a not-for-profit organisation is:   
(a) Subscription from Members
(b) Donation
(c) Entrance Fees
(d) All of the above

Question. Which of the following is not a revenue receipt?   
(a) Life Membership Subscription
(b) Donation
(c) Subscription
(d) Interest on Investments

Question. The financial statements of the Not-for-Profit Organisation are:   
(a) Receipts and Payments Account
(b) Income and Expenditure Account
(c) Balance Sheet
(d) All of the above

Question. Out of the following items, which is shown in the ‘Receipts and Payments A/c’ of a not-for-profit organisation?   
(a) Subscription received in advance
(b) Last year subscription received
(c) Current year subscription received
(d) All of the above

Question. What amount will be credited to the Income and Expenditure Account for the year ending 31st March 2020 on the basis of the following information?   

Subscriptions received during the year 2019-20 were ₹4,00,000.   
(a) ₹3,84,000
(b) ₹4,16,000
(c) ₹3,86,000
(d) ₹4,14,000

Question. Subscription received in advance during the current year is:   
(a) An income
(b) An asset
(c) A liability
(d) None of these

Question. Salaries payable for the current year amount to Rs. 8,500 at the end of the year. Outstanding salaries amounted to Rs. 300. Salaries paid in advance last year pertaining to the current year amounted to Rs.500. Prepaid salaries for the next year amount to Rs.250. total amount paid for salaries during the year is
(a) Rs.7,550
(b) Rs.7,500
(c) Rs. 7,950
(d) Rs.6,500

Question. Subscription received in advance during the accounting year is
(a) an income
(b) an expense
(c) Asset
(d) Liability

Fill in the blanks: 

Question. Donations for specific purposes are always ____________.

Question. Purchase of sports material is ______________ to Income & Expenditure account.

Question. Scholarships grant to students by the government will be ____________ to Income & Expenditure account.

Question. Outstanding Subscriptions are shown on the ______________ side of Balance sheet.

Question. restricted fund can be used for ———purpose

Question. Endowment Fund is —–,—Fund.

Question. Fund based accounting is used by ———-organisations.

Question. When Expenditure is paid out of current/ restricted fund, cash/bank account is credited and
————–is debited.

Question. General Fund can be transferred to ——,——— Fund

Question. ——-.——————— represents the excess of assets over liabilities.

Question. Subscriptions are ___________ in nature for a Not for Profit Organisation

Question. Not for Profit Organisation is a ____________ Legal entity.

Question. Capital fund Is also known as _________________

Question. An NPO does not have ____________ like proprietorship, partnership and joint stock company.

True or False

Question. Charitable institutions prepare income and expenditure account at the end of every financial year.

Question. Not for profit concerns concentrate their efforts on maximising the profits.

Question. All receipts are the items of revenue nature.

Question. There is no difference between the nature of Receipt & Payment Account and Income & Expenditure account.

Question. Income & expenditure account do not have opening balance.

Question. 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.;

Question. If a Club has 400 members each paying a monthly subscription of Rs. 100, Subscription to be credited to Income and Expenditure Account is Rs. 40,000.

Question. Bank overdraft is shown on credit side of Receipts and Payments Account in the beginning of the year.

Question. Deficit decreases the credit balance of Capital Fund.

Question. Income and Expenditure Account is prepared on cash basis while Receipts and Payments Account is prepared on accrual basis.

Match The Following

Description	Options
Options	A .Income and Expenditure A/c
1 It is like a summary of cash transactions.	b.Opening Balance Sheet
2 It is like a Profit and Loss A/c	c.Receipts and Payment A/c

Description	Option
1 Tournament Fund Rs 45,000 and Tournament ExpenseRs 40,000	a.Rs 20,000 will be shown in Balance Sheet (Liabilities)
2 Tournament Fund Rs 60,000 and Tournament Expenses Rs 40,000	b.Rs 12,000 is Debited as expense and Rs. 18000 is Credited as Income.
3 Tournament Receipts Rs 18,000 and Tournament Expenses Rs 12,000	c.Rs 5,000 will be shown in Balance Sheet (Liabilities)
4 Tournament Receipts Rs16000 and Tournament Exp. Rs 21000	d. Rs 5,000 will be debited to Income and Expenditure Account.

Description	Options
1 Legacy donation for specific purpose is shown in Balance Sheet because it is	a.Opening Balance Sheet and Closing Balance Sheet and Income and Expenditure A/c
2 Entrance Fees is shown in	b. Shown in Receipts and Payment A/c
3 Opening and Closing Cash Balance are shown in	c.Capital Nature Income
	d.Income and Expenditure A/c