CBSE Class 12 Accountancy HOTs Accounting for Not-for- Profit Organisation

1. “ A non profit organisation follows hybrid system of accounting. Do you agree with this.

Ans.Yes. A non profit organisation follow the combina-tion of cash and accrual system ie, hybrid system.

2. “Receipts and Payments Account is similar to a cash book”. Do you agree? Comment.

Ans Yes, it is similar to a cash book and hence it serves the purpose of  a  cash book. All  cash  transactions, whether  revenue or capital  in nature are accounted for. This  accounts begins with opening balance of cash and gives the cash balance at the end of the pe-riod.

HOTS (HIGHER ORDER THINKING SKILLS)

3. From the following particulars calculate the total amount of subscription to be credited to Income and Expenditure account for the year 2002.

                                                                      Rs.

Subscription received during 2002      -    5,000

Subscription outstanding in 2001       -     200

Subscription outstanding in 2002      -      500

Subscription received in advance in 2001 - 400

Subscription received in advance in 2002 - 300

Solution:

4. From  the  following particulars, prepare  a  sub-scription  account  for  the  year  2001,  total subscription received during the year 2001 is Rs. 10,000 (including Rs. 600 for the year 2,000 and Rs. 400 for the year 2002). Subscription received in advance in the year 2000 for the year 2001 was amounted to Rs. 500. Subscriptions outstanding during the year 2001 is Rs. 550.

7. Calculate  from  the  following  particulars,  the amount of stationery to be debited to Income and Expenditure Account.

                                                                              Rs.

Cash purchases of stationery during the year - 2,100

Due for stationery on closing date                   - 180

Stock of stationery on opening date                - 210

Stock of stationery on closing date                  - 130

ACCOUNTING FOR – NOT FOR PROFIT ORGANISATIONS

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