Maharashtra State BoardHSC Commerce 12th Board Exam
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State whether the following statement is True or False with reasons. Charitable Institutions prepare Profit and Loss Account, at the end of every financial year. - Book Keeping and Accountancy

MCQ
True or False

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

Charitable Institutions prepare Profit and Loss Account, at the end of every financial year.

Options

  • True

  • False

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Solution

Charitable Institutions prepare Profit and Loss Accounts at the end of every financial year. - False.

Explanation:

Charitable Institutions, Not for Profit concerns, do not undertake any trading activities and hence instead of a Profit and Loss Account prepare an Income-Expenditure Account to record all revenue expenses/losses and revenue incomes/gains of current year.

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APPEARS IN

Micheal Vaz Accounts - Book Keeping and Accountancy HSC 12th Standard Maharashtra State Board
Chapter 7 Accounts of 'Not For Profit' Concerns
Exercise | Q 4 | Page 228
Balbharati Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board
Chapter 2 Accounts of ‘Not for Profit’ Concerns
Exercise 2 | Q 1. C) 2. | Page 112
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