Goyal Brothers Prakashan solutions for कमर्शियल ॲप्लिकेशन्स [इंग्रजी] इयत्ता १० आयसीएसई chapter 6 - Financial Accounting and Reporting [Latest edition]

The Receipts and Payments Account includes both cash and non-cash transactions such as depreciation.

Assertion (A): The Receipts and Payments Account reflects non-cash transactions such as depreciation.

Reasoning (R): Depreciation is a non-cash expense that affects the organization’s financial position.

It is a summary of all incomes and expenses of the current accounting year. It is prepared to know the surplus or deficit during the accounting year.

It is a statement of assets and liabilities. It is prepared to judge the financial position on a particular date.

A charitable organization has recently sold old office fumiture and purchased new sports equipment. In the Receipts and Payments Account, where would these transactions appear, and what impact would they have on the final balance?

All cash payments are recorded on the ______ side of the receipt and payment accounts.

The primary objective of preparing this Account is to find out the cash position, opening and closing balances of cash in hand and at bank.

The closing balance of this Account shows surplus or deficit for the year.

It alerts the management of a non-trading organisation about decline in cash receipts and increase in cash payments.

Receipt and payment account has the following limitation(s). 

This account is equivalent to the Profit and Loss Account of a business concern.

It serves as the basis for preparing the Balance Sheet of a non-trading organisation.

The main use(s) of a Balance Sheet for a non-trading organisation is/are ______.

Assertion (A): The Balance Sheet provides information about an organization’s financial position at a specific point in time.

Reasoning (R): The Balance Sheet includes assets, liabilities, and equity, which reflect the organization’s resources, obligations, and owner’s interests.

The capital fund in the Balance Sheet increases with a surplus shown in the Income and Expenditure Account.

Regarding the components of an Income and Expenditure Account, which statement(s) is (are) accurate?

1. Income and Expenditure Account is prepared to ascertain the profit or loss of a non-profit organization.
2. Income and Expenditure Account includes both revenue and capital items.
3. Income and Expenditure Account is only applicable to businesses and corporations.
4. Income and Expenditure Account records only cash transactions.

It contains both capital and revenue items.

Which of the following is/are correct statement(s)?

Statement 1: Income and Expenditure Account includes both capital and revenue items.

Statement 2: Receipts and Payments Account is a summary of cash transactions over a specific period.

If the total of ______ side is greater than the total of ______ side, it is called ‘surplus’ or ‘excess of income over expenditure’.

Which of the following is/are correct statement(s)?

Statement 1: Income and Expenditure Account includes both capital and revenue items.

Statement 2: Receipts and Payments Account is a summary of cash transactions over a specific period.

______ shows the financial position of the organization.

Receipt and Payment account is a _____ account.

Which of the following is not a feature of Balance Sheet?

______ depicts the capital fund of the organization.

Identify which of the following does not have an opening balance.

______ is a summary of cash transactions.

The closing balance of this account shows surplus/deficit ______.

______ account is prepared to ascertain surplus or deficit at the end of an accounting year.

______ records all cash transactions whether they belong to the current year, previous year or future year.

With reference to Receipts & Payments Account which feature(s) is/are correct?

1. It is a real account.
2. It reveals the surplus or deficit for the year.
3. It is a summary of cash receipts.
4. It contains non-cash items.

______ depicts the Capital Fund of the organisation.

What are fictitious assets?

Give one example of fictitious assets.

Distinguish between a Profit and Loss Account and a Balance Sheet.

What are contingent liabilities?

Give one difference between fixed assets and current assets.

Why and by whom is an Income and Expenditure Account prepared?

Distinguish between Receipt and Income.

Give one difference between Receipts and Payments Account and Cash Book.

Explain current assets with an example.

“A receipts and payments account is a nominal account.” Justify a reason either for or against.

State any one point of difference between Receipt and Payment account and Income and Expenditure Account. 

“Receipts and payments account serves as the basis for preparing the balance sheet of non-trading organisation.” Justify this statement.

“Balance sheet without an account but a statement.” Justify this statement.

State any two uses of Balance Sheet. 

“Balance sheet is an account.” Justify.

Explain the purpose of preparing Final Accounts.

Explain Asset. 

Explain Liability.

Name the different types of liabilities.

Write a short note on the role of balance sheet in decision making.

Give five differences between Profit and Loss Account and Income and Expenditure Account. 

What is a Balance Sheet?

What are the features of a Balance Sheet?

Explain types of business assets.

Mention any two features of the Income and Expenditure Account.

Explain five uses of Balance Sheet.

State five uses of the Receipts and Payments account.

How will Income and Expenditure account benefit a non-trading sports organisation?

Give any two uses of Income and Expenditure Account.

The Balance Sheet of a non-trading organisation is prepared based on relevant information. In this context, explain any five of its features.

What are expenses?

Explain any two types of Expenses.

What is Receipts and Payments Account?

Give two/three uses of Receipts and Payments Account.

What is Income and Expenditure Account? 

Give any two uses of Income and Expenditure Account.

What is a Balance Sheet?

State any two uses of Balance Sheet. 

What are the features of a Balance Sheet?

Mention any two features of the Income and Expenditure Account.

Mention any two features of Receipts and Payments Account.

State any one point of difference between Receipt and Payment account and Income and Expenditure Account. 

How is Receipts & Payments Account different from Income & Expenditure Account?

Distinguish between Receipt and Income.

Distinguish between a Profit and Loss Account and a Balance Sheet.

Explain the term surplus in Income and Expenditure Account. 

Explain the term deficit in Income and Expenditure Account.

All membership fees collected by a non-trading concern must be entered in the assets side of the balance sheet. Justify for or against.

Justify for or against:

Profit and loss account reveals the financial position of an organisation.

All donations received by non-trading concerns are entered in the liabilities side of the balance sheet. Justify either for or against.