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State Whether the Following Statement is True Or False. - Book Keeping and Accountancy

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प्रश्न

State whether the following statement is True or False.
There is no difference between Receipts and Payment Account and Income and Expenditure Account.

पर्याय

  • True

  • False

MCQ
चूक किंवा बरोबर
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उत्तर

False

Explanation:
 Similar to a Profit & Loss Account, Income and Expenditure Account is prepared to ascertain the surplus/deficit of a concern during the accounting year, whereas Receipts and Payments Account is a summary of the cash book.  Income and Expenditure Account is a nominal account that records all revenue expenses and all revenue incomes, while Receipts and Payment Account is a real account that records receipts and payments of capital and revenue nature.

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  या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
पाठ 7: Accounts of 'Not For Profit' Concerns - Exercise 4 [पृष्ठ २२८]

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मायकल वाझ Book Keeping and Accountancy [English] 12 Standard HSC Maharashtra State Board
पाठ 7 Accounts of 'Not For Profit' Concerns
Exercise 4 | Q 5 | पृष्ठ २२८

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.


Select the most appropriate answer from the alternatives given below and rewrite the sentence.
Non-Cash items are not recorded in_____________ 


State the meaning of Receipt and Payment Account.


The closing balance of Receipts and Payments account usually represent _______.


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.

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


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.

Purchases of Sports Equipments is a Capital Expenditure.


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

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


Credit side of Receipts and Payments Account shows cash ______.


Answer in one sentence only.

What is Receipts and Payments Account?


Receipts and payments account is a _________.


What is receipts and payments account?


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


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    

From the following information, prepare the Receipts and Payments account of Cuddalore Kabaddi Association for the year ended 31st March, 2019.

Particulars Particulars
Opening cash balance (1.4.2018) 11,000 Interest and bank charges 250
Bank overdraft balance (1.4.2018) 20,000 Miscellaneous income 350
Stationery purchased 5,200 Upkeep of ground 550
Travelling expenses 1,800 Grant from Government 12,000
Dividend received 3,000 Telephone charges paid 2,800
General expenses 500 Endowment fund receipts 10,000
Admission fees 4,000 Insurance premium paid 2,000
Courier charges 2,000 Electricity charges paid 5,000
Municipal taxes paid 3,000 Closing cash balance (31.03.2019) 1,750

How would you treat the following item in the case of a 'not-for-profit' organization?

"Tournament Fund Rs.40.000. Tournament Expenses Rs.14.000. Receipts from Tournament Rs.16.000."


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.


Consider the following statements

Statement 1 - "Receipt and Payment Account records the receipts and payments of revenue nature only".

Statement 2 - "Receipt and Payment Account records the receipts and payments of revenue nature and capital nature".


Complete the following sentence.

"______ donations are to be utilized to promote the general purpose of the organization".


Pick the odd one out:


Fund Based Accounting is classified under:

(i) Unrestricted funds

(ii) Fixed assets funds

(iii) Restricted funds

(iv) Annuity funds


Receipts and Payments Account is a summary of ______.


Identity the type of fund stated below:

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


Sports expenses ₹ 27,000 (excluding ₹ 7,000 unpaid expenses). The amount to be credited to Receipts and Payments Account will be:


Which of the following represents capital receipt?


Out of the following items, which one is shown in the Receipts and Payments Account?


Receipts and Payments Account features include:


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


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


Payment of Honorarium of Secretary is a ______.


From the following Receipts and Payments Account of “Matsyodari Engineering College, Aurangabad” for the year ending on 31st March, 2020 and additional informations, prepare Income and Expenditure Account for the year ending 31st March, 2020 and Balance Sheet as on that date:

Dr. Receipts and payment Account
for the year ended 31st March, 2020
Cr.
Receipts Amount ₹ Payments Amount ₹
To Balance b/d   By Salaries to Teaching
Staff
10,00,000
Cash in hand 8,000 By Electricity charges 50,000
Cash at bank 1,00,000 By Books 64,000
To Interest 50,000 By Furniture 55,000
To Subscription 30,000 By Stationary 24,000
To Life Membership Fees 40,000 By Fixed Deposit 7,00,000
To Donation 5,00,000 By Balance c/d  
To Tuition fees 11,50,000 Cash in hand 20,000
To Term fees 2,00,000 Cash at bank 2,25,000
To Sundry Receipts 10,000    
To Admission Fees (Revenue) 50,000    
  21,38,000   21,38,000

Additional information:

Particulars 01.04.2019 31.03.2020
Books 7,00,000 7,00,000
Furniture 3,19,000 3,00,000
Building fund 10,00,000 ?
Fixed Deposit 9,10,000 ?
Capital Fund 10,37,000 ?

Adjustment:

  1. 50% Donations are for Building fund and the balance is to be treated a Revenue Income.
  2. Outstanding subscription ₹5,300.
  3. Life Membership fees are to be capitalised.

Find the incorrect pair from group A and B.


What is the correct chronological order of four civilisations of Mesopotamia


Find out the wrong pair.


Do you agree or disagree with the following statements:

All receipts are the items of revenue income.


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