If you are appearing for CBSE Class 12thBoard exams 2020, check this list of important questions and answers from Chapter 1of Accountancy.
CBSE Class 12thAccountancy exam is scheduled for 5thMarch 2020. In this article we have complied a list of important questions from Chapter 1: Accounting for Not-for-Profit Organisation. Questions given below are important questions and are expected to be asked in Class 12 Accountancy board exam2019-20
Ques 1 How are Specific donations treated while preparing final accounts of a ‘Not-For-Profit Organisation’?
Solution: Specific donations are taken on the liabilities side of the Balance Sheet of a Not-For-Profit Organisation
or
Specific donations are capitalized while preparing the final accounts of a Not-For Profit Organisation.
Ques 2 State the basis of accounting of preparing ‘Income andExpenditure Account’ of a Not-For-Profit Organisation.
Solution: Accrual basis.
Ques 3 State the main aim of a not-for-profit organisation.
Solution: The main aim of a Not-for –profit organization is to provide service to a specific group or to the public at large.
Ques 4 Distinguish between ‘Receipts and Payments Account’ and ‘Income and Expenditure Account’ on the basis of ‘Depreciation’.
Solution: Receipts and payment account doesn’t include depreciation as depreciation is a non-cash expense. Whereas income and expenditure account includes depreciation as an expenditure.
Ques 5 From the following Receipts and Payments Account and additional information, prepare Income and Expenditure Account and Balance Sheet of Sears Club, Noida as on March 31, 2018.
Receipts and Payments & Account of Sears Club for the year ended 31-3-2018
Additional Information :
(i) The club has 200 members each paying an annual subscription of Rs. 1,000. Rs. 60,000 were in arrears for last year and 25 members paid in advance in the last year for the current year.
(ii) Stock of stationery on 1-4-2017 was Rs. 3,000 and on 31-3-2018 was Rs. 4,000.
Solution:
Dr.Income and Expenditure A/c for the year ended March 31, 2018 Cr.
| Particulars | Amount | Particulars | Amount |
| To Stationery consumed To loss on sale of old furniture To electricity expenses To expenses on lectures To surplus | 22,400 2,400 10,600 30,000 1,52,960 | By Subscriptions By Interest on investments 800 Add interest accrued 160 By Government Grant | 2,00,000 960 17,400 |
| 2,18,360 | 2,18,360 |
Balance Sheet of Sears Club as on 31st March 2018
| Liabilities | Amount | Assets | Amount |
| Subscriptions received in advance Donations for building Capital Fund 62,000 Add Surplus 1,52,960 | 7,200 40,000 2,14,960 | Outstanding Subscriptions Stock of Stationery Cash Investments Interest accrued on investments Sports Equipment Books | 1,01,000 4,000 50,000 8,000 160 59,000 40,000 |
| 2,62,160 | 2,62,160 |
Interest on 12% Investments
In case, a candidate has credited Income and Expenditure Account byRs.800 on account of Interest on 12% Investments, it may be marked correct.
Working Notes:
Balance Sheet of Sears Club as on 31st March 2017
| Liabilities | Amount | Assets | Amount |
| Subscriptions received in advance Capital Fund | 25,000 62,000 | Outstanding Subscriptions Stock of Stationery Cash Furniture | 60,000 3,000 20,000 4,000 |
| 87,000 | 87,000 |
Ques 6 Namanjyot Society showed the following position :
Balance Sheet as at 31st March, 2018
| Liabilities | Amount | Assets | Amount |
| Subscriptions received in advance Capital Fund | 6,000 72,000 | Cash at Bank Cash in hand Furniture | 30,000 8,000 40,000 |
| 78,000 | 78,000 |
Receipts and Payments Account for the year ending 31st March, 2018
Additional Information :
(i) Computers were to be depreciated @ 60% p.a. and furniture @ 10% p.a.
(ii) Membership subscription included < 20,000 received in advance.
(iii) Electric charges outstanding < 10,000.
Prepare Income and Expenditure Account for the year ending 31st March, 2018.
Solution:
⇒CBSE Sample Paper for Class 12 Accountancy Board Exam 2020 (Issued by CBSE)
Ques 7 What is meant by ‘Life membership fees’ ?
Solution: Membership fee paid in lump sum to become a life member of a not- for- profit organisation.
Ques 8From the following Receipts and Payments Account and additional information, prepare Income and Expenditure Account and Balance Sheet of Sears Club, Noida as on March 31, 2018.
Additional Information :
(i) The club has 200 members each paying an annual subscription of Rs. 1,000. Rs. 60,000 were in arrears for last year and 25 members paid in advance in the last year for the current year.
(ii) Stock of stationery on 1-4-2017 was ` 3,000 and on 31-3-2018 was Rs. 4,000.
Solution:
Dr. Income and Expenditure A/c for the year ended March 31, 2018 Cr.
| Particulars | Amount | Particulars | Amount |
| To Stationery consumed To loss on sale of old furniture To electricity expenses To expenses on lectures To surplus | 22,400 2,400 10,600 30,000 1,52,960 | By Subscriptions By Interest on investments 800 Add interest accrued 160 By Government Grant | 2,00,000 960 17,400 |
| 2,18,360 | 2,18,360 |
Balance Sheet of Sears Club as on 31st March 2018
| Liabilities | Amount | Assets | Amount |
| Subscriptions received in advance Donations for building Capital Fund 62,000 Add Surplus 1,52,960 | 7,200 40,000 2,14,960 | Outstanding Subscriptions Stock of Stationery Cash Investments Interest accrued on investments Sports Equipment Books | 1,01,000 4,000 50,000 8,000 160 59,000 40,000 |
| 2,62,160 | 2,62,160 |
Interest on 12% Investments
In case, a candidate has credited Income and Expenditure Account byRs.800 on account of Interest on 12% Investments, it may be marked correct.
Working Notes:
Balance Sheet of Sears Club as on 31st March 2017
| Liabilities | Amount | Assets | Amount |
| Subscriptions received in advance Capital Fund | 25,000 62,000 | Outstanding Subscriptions Stock of Stationery Cash Furniture | 60,000 3,000 20,000 4,000 |
| 87,000 | 87,000 |
Ques 9 How is ‘Life membership fee’ treated while preparing the financial statements of a not-for-profit organisation ?
Solution: Life membership fee is capitalized and added to Capital fund i.e. shown on the Liabilities side of Balance Sheet.
