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State whether the following statement is True or False with reasons. There is no difference between Receipts and Payments Account and Income and Expenditure Account. - Book Keeping and Accountancy

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प्रश्न

State whether the following statement is True or False with reasons.

There is no difference between Receipts and Payments Account and Income and Expenditure Account.

विकल्प

  • True

  • False

MCQ
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उत्तर

There is no difference between Receipts and Payments Account and Income and Expenditure Account. - False.

Explanation:

In the receipts and Payments Account, all receipts and payments transactions in cash or through the bank are recorded irrespective of the current year, previous year or next year. In contrast, in the income-expenditure Account, only the current year’s incomes and expenses (revenue) are recorded.

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अध्याय 2: Accounts of ‘Not for Profit’ Concerns - Exercise 2.1 (Objective Type Questions) [पृष्ठ ११२]

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बालभारती Book-Keeping and Accountancy [English] Standard 12 Maharashtra State Board
अध्याय 2 Accounts of ‘Not for Profit’ Concerns
Exercise 2.1 (Objective Type Questions) | Q 1. C) 3. | पृष्ठ ११२

संबंधित प्रश्न

Write one Word/Term/Phrase for the following statement.

All such receipts which are non-recurring in nature and not forming a part of regular flow of income.


State the meaning of Receipt and Payment Account.


Donation for Scholarship Fund is ______.


Write the word/phrase/term, which can substitute the following sentence.

The receipts which are not recurring in nature.


Write the word/phrase/term, which can substitute the following sentence.

Accounts which records only cash transactions in case of Not for Profit Concern.


Write the word/phrase/term, which can substitute the following sentence.

All such receipts which are non-recurring in nature and not forming a part a regular flow of income.


State whether the following statement is True or False with reasons.

Receipts and Payments Accounts do not have any opening balance.


State whether the following statement is True or False with reasons.

Receipts and Payments Account contains only the transactions relating to the current year.


Receipts and Payments Account falls under the category of _____ Account.


Credit side of Receipts and Payments Account shows cash ______.


Find odd one:


Receipts and payments account is a _________.


Receipts and payments account records receipts and payments of _____________.


Balance of receipts and payments account indicates the _________.


What is receipts and payments account?


Give four examples for capital receipts of the not-for-profit organisation.


From the information given below, prepare the Receipts and Payments account of Kurunji Sports Club for the year ended 31st December, 2018.

Particulars Particulars
Cash in hand (1.1.2018) 4,000 Paid for printing charges 2,500
Salaries paid 3,000 Lockers rent received 1,000
Life membership fees received 10,000 Tournament receipts 14,000
Subscription received 15,000 Tournament receipts 10,500
Rent received 2,000 Investments purchased 25,000

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

Particulars Particulars
Bank overdraft (1.4.2018)   6,000 Honorarium paid 2,800
Cash in hand (1.4.2018)   1,000 Water and electricity charges 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    

From the information given below, prepare the Receipts and Payments account of Madurai Mother Theresa Mahalir Mandram for the year ended 31st December, 2018.

Particulars Particulars
Cash balance as on 1.1.2018 2,000 Fire Insurance premium paid 1,500
Bank balance as on 1.1.2018 3,000 Subscription received 8,500
Sale of old newspapers 500 Furniture purchased 6,000
Stationery purchased 6,000 Purchase of newspapers 700
Audit fees paid 2,000 Depreciation on furniture 900
Entrance fees received 3,000 Cash balance as on 31.12.2018 2,500
Sundry charges 6,000 Conveyance paid 1,000
Scholarships given 2,000 Sale of furniture 4,000
Interest on investments 2,000    

Mayiladuthurai Recreation Club gives you the following details. Prepare Receipts and Payments account for the year ended 31st March, 2019.

Particulars Particulars
Opening cash balance 15,000 Salary of watchman 12,000
Opening bank balance 25,000 Club annual day expenses 15,000
Donations received 48,000 Lighting charges 16,500
Sale of old equipment 26,000 Entertainment expenses 13,500
Refreshment charges 13,000 Billiards table purchased 5,000
Club annual day collections 18,000 Expenses of charity show 3,000
Construction of tennis court 7,000 Sale of investments 12,000
Receipts from charity show 4,000 Closing cash balance 12,000
Rent paid 1,000    

From the following Receipts and Payments Account and additional information provided by Ramanath Club, Prepare Income and Expenditure Account for the year ending on 31st March 2021.

Receipts and Payments Account for the year ending 31st March, 2021
Receipts Amount (₹) Payments Amount(₹)
To Balance b/d 48,000 By Salaries and Wages:    
To Subscription 95,000 2019-20 10,600  
To Entrance Fee 1,56,000 2020-21 1,03,200 1,13,800
To Locker rent 50,000 By Sundry expenses   47,000
To Interest on 8% govt. Securities 5,400 By Refreshment expenses   60,400
To Revenue from refreshment 52,000 By Telephone bill   5,000
To Sale of old newspapers 4,600 By Rent & Rates   24,000
To Sale of furniture (Book value: ₹ 11,000) 12,000 By Library Book   25,000
    By 8% Govt. Securities   30,000
    By Honorarium to Secretary   5,000
    By Balance c/d   1,12,800
  4,23,000     4,23,000

Additional Information:

  1. Subscription received during the year includes ₹ 25,000 as donation for Building.
  2. Telephone bill unpaid as on March 31, 2020, was ₹ 4,000 and on March 31, 2021, ₹ 2,600.
  3. Value of 8% Government Securities on March 31, 2020, was ₹ 80,000.
  4. Additional Government Securities worth ₹ 30,000 were purchased on March 31, 2021.

Life membership fees are treated as which type of receipt and is directly credited to the capital fund?


Write the steps in ascending order of Conversion of a Receipt and Payment Account into an Income and Expenditure Account:

(i) Adjusting the revenue receipts on the debit side to include outstanding incomes and incomes relating to the current year received earlier and to exclude amounts received in arrears or in advance.

(ii) identifying and showing non-cash expenses and losses on the debit side of the Income and Expenditure Account.

(iii) computing and showing profits/losses from trading and/or social activities on the credit/debit side of the Income and Expenditure Account.

(iv) Ascertaining the surplus or deficit as the dosing balance of the Income and Expenditure Account.

(v) adjusting revenue payments on the credit side.


Consider the following statements,

Statement 1: "Receipt and Payment Account is a summary of all capital receipts and payments".

Statement 2: The Receipt and Payment Account is the summary of cash and bank transactions.


Assertion (A): The Subscription received during the year is recorded in the Receipts and Payments Account.

Reason (R): Receipts and Payments Account records all the cash transactions whether pertaining to the current year or the previous year.


Amount received from 'Special Contribution for Silver Jubilee' by a club should be treated as:


Pick the odd one out:


Which of the following is not a capital receipt?


Identity the type of fund stated below:

'Himanshu Club has a fund which can only be used for the distribution of prizes.'


A donation received for a special purpose is a ______


Subscription received by a school for organising annual function is treated as ______.


Which of the following represents capital receipt?


The amount received from the sale of grass by a club should be treated as ______


A school purchased a furniture for ₹ 80,000 and spent ₹ 1,200 for carriage. The furniture should be capitalised for:


The Receipts and Payments Account is a summary of ______.


If a general donation of smaller amount is received by a school, that donation will be shown on ______.


Features of Income and Expenditure are:

(i) No opening or closing balance

(ii) Prepared on an accrual basis

(iii) Records only Revenue Items

(iv) Relevant only to the current year


As per Receipts and Payments Account of Kala Club for the year ended 31st March, 2021, subscriptions received were ₹ 4,00,000.

 
Subscriptions outstanding on 1.4.2020 1,00,000
Subscriptions outstanding on 31.3.2021 70,000
Subscriptions received in advance on 1.4.2020 50,000
Subscriptions received in advance on 31.3.2021 80,000

Calculate the amount of subscriptions to be shown in Income and Expenditure Account for the year ended 31st March, 2021 as income from subscription.


What is the correct chronological order of four civilisations of Mesopotamia


Mumbai University prepares ______ Account instead of a Profit and Loss account.


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