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State whether the following statement is True or False with reasons. Receipts and Payments Account contains only the transactions relating to the current year. - Book Keeping and Accountancy

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प्रश्न

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

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

पर्याय

  • True

  • False

MCQ
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उत्तर

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

Explanation:

In the receipts and Payments Account, transactions of the current year, the previous year, or the next year are also recorded.

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पाठ 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
पाठ 2 Accounts of ‘Not for Profit’ Concerns
Exercise 2.1 (Objective Type Questions) | Q 1. C) 9. | पृष्ठ ११२

संबंधित प्रश्‍न

Fees paid by persons to become members of a ‘Not for Profit’ concern.


Receipt and Payment account is a ______ account.


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_____________ 


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.


In Receipts and Payments Account the summary of _____ transactions are recorded.


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 _________.


Balance of receipts and payments account indicates the _________.


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


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    

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 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".


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.


Pick the odd one out:


Which of the following is not a capital receipt?


Receipts and Payments Account is a summary of ______.


The nature of Receipts and Payments Account is ______.


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


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


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:


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


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.

What is the correct chronological order of four civilisations of Mesopotamia


Find out the wrong pair.


From the following Receipts and Payments Account of Bharati Vidyapeeth College, Kolhapur for the year ending 31st March, 2019 and additional information, Prepare Income and Expenditure Account for the year ended 31st March, 2019 and a Balance Sheet as on that date.

Dr. Receipts and payment Account
for the year ended 31st March, 2019
Cr.
Receipts Amount ₹ Payments Amount ₹
To Balance b/d:   By Salaries to:  
Cash  12,000 Teaching Staff 15,00,000
Bank  2,00,000 Office Staff 8,55,000
To Interest 60,000 By Printing & Stationery 27,000
To Donation 7,00,000 By Books 88,000
To Tuition Fees 15,00,000 By Furniture (Purchased on 1-1-2019) 78,000
To Admission Fees 65,000 By Drama Expenses 90,000
To Term Fees 4,00,000 By Postage 7,000
To Drama Receipts 1.00,000 By Telephone Charges 6,000
To Rent from use of Hall 6,000 By Electricity 61,000
To Legacies (Capital) 60,000 By Magazines and Newspaper 6,500
    By Balance c/d :  
    Cash 62,000
    Bank 3,23,000
  31,03,000   31,03,000

Additional information:

Particulars 01.04.2018 31.03.2019
Books 9,00,000 8,88,000
Furniture 3.26.000 3,00,000
Building Fund 8,27,000 ?
Capital Fund 6,11,000 ?
  1. 60 % Donations are for Building Fund and Balance is to be treated as Revenue Income.
  2. Outstanding Office Staff Salaries ₹ 70,000

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


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