Refer to CBSE Class 12 Accountancy Accounting for Not for Profit Organisation MCQs provided below available for download in Pdf. The MCQ Questions for Class 12 Accountancy with answers are aligned as per the latest syllabus and exam pattern suggested by CBSE, NCERT and KVS. Multiple Choice Questions for Chapter 1 Financial Statements of Not for Profit Organisations are an important part of exams for Class 12 Accountancy and if practiced properly can help you to improve your understanding and get higher marks. Refer to more Chapter-wise MCQs for CBSE Class 12 Accountancy and also download more latest study material for all subjects
MCQ for Class 12 Accountancy Chapter 1 Financial Statements of Not for Profit Organisations
Class 12 Accountancy students should refer to the following multiple-choice questions with answers for Chapter 1 Financial Statements of Not for Profit Organisations in Class 12.
Chapter 1 Financial Statements of Not for Profit Organisations MCQ Questions Class 12 Accountancy with Answers
Question. Income and Expenditure account shows transactions of Capital nature for the accounting year. (TRUE/FALSE)
Ans: False
Question. Surplus or Deficit of a non-profit organisation is added to or subtracted from accumulated fund (TRUE/FALSE)
Ans: True
Question. A NPO has a Match Fund of <1,00,000 and Match Expenses of <40,000 Match fund and Match expenses will be shown in the liabilities side of the Balance Sheet , expenses being deducted from fund.(TRUE/FALSE)
Ans: True
Question. An advance receipt of subscription from members of Not-for–profit organisation is an Asset. (TRUE/ FALSE)
Ans: False
Question. Under NPO, sale of old newspaper is shown as an income (TRUE/FALSE)
Ans: True
Question. Excess of Income over Expenditure in Income and Expenditure account prepared by a NPO is termed as Deficit.( TRUE/FALSE)
Ans: False
Question. Building Fund, Library Fund et(c) is based on____________Accounting.
Ans: Fund Based
Question. Amount paid by the members to keep their membership alive is termed as__________.
Ans: Subscription
Question. Amount received as donation by NPO under will of a deceased person is termed as______.
Ans: Legacy
Question. Life membership fees received by a NPO is a________.
Ans: Capital Receipt
Question. Token payment made to a person, who voluntarily undertakes a service which would normally command a fee is_______
Ans: Honororium
Question. Receipts and Payments Account is based on__________Basis of accounting.
Ans: Cash Basis
Question. Which of the following is an example of not-profit-organisation:
(a) Public hospitals
(b) Corporations
(c) Audit firm
(d) Insurance companies.
Ans: A
Question. <100000 received as annual subscription. Out of this <20000 is of pervious year whereas <10000 is receivable at the end of the current year. Amount of subscription that will be show in income and expenditure account will be
(a) <1, 00,000
(b) <90, 000
(c) <1, 20,000
(d) <80, 000
Ans: B
Question. Surplus of Not-for –Profit organisations
(a) Distributed among the members
(b) Is not distributed among the members
(c) May be or May not be distributed among the members
(d) Is debited to General fund.
Ans: B
Question. If Life Membership fees of <5000 wrongly treated as revenue receipt then effect of this error on surplus and closing balance of capital fund will be
(a) Capital fund increased and surplus increased by<5000
(b) Capita fund decreased and surplus increased by<5000
(c) No effect on capital fund but surplus increased by<5000
(d) Capital fund decreased by <5000 but no effect on surplus.
Ans: C
Question. Income and Expenditure Account is based on
(a) Cash Basis of Accounting.
(b) Accrual Basis of Accounting.
(c) Mixed Basis of Accounting.
(d) Management Accounting.
Ans: B
Question. Delhi cricket club gives the following information. Opening Stadium Fund is <10, 00,000. Donation for Stadium fund received during the year Rs.500000. Income from Stadium Fund Investment Rs.100000. Amount spent during the year on construction of stadium is Rs.600000. Identify which of the following statement is correct in respect to preparation of Balance sheet.
(a) Rs.600000 shown on the asset side of the Balance sheet.
(b) Rs.600000 shown on the asset side of the Balance sheet Also Rs.600000 is transferred to the credit of Income and Expenditure account,
(c) Rs.600000 shown on the asset side of the Balance sheet Also Rs.600000 is transferred from Stadium fund to General fund in the Balance sheet.
(d) Rs.600000 is shown as an expense in the Income and Expenditure account and Rs.600000 is transferred to the credit pf Income and Expenditure account from Stadium fund.
Ans: C
Question. Subscriptions received during the year Rs.5,000,amount received in advance for the next year is Rs.300. Amount outstanding for current year was Rs.400. The amount to be credited to the Income and Expenditure account is
(a) 4,000
(b) 5100
(c) 4200
(d) 4600
Ans: B
Question. Subscription received during the year Rs.50, 000. ;Subscriptions Outstanding at the end of the year` 8,000; Subscription outstanding at the beginning of the year ` 6,000. Net Income from subscription will be
(a) 48,000
(b) 64,000
(c) 52,000
(d) 36,000
(a) Debited to Income and Expenditure account
(b) Credited to Tournament Fund
(c) Shown on the Asset side of Balance sheet
(d) Credited to Income and Expenditure Account
Ans: A
Question. Which of the following is prepared to find out the income of a trading concern?
(a) Receipts and Payments a/c
(b) Income and Expenditure a/c
(c) Profit and Loss a/c
(d) Balance Sheet.
Ans: C
Question. If Income is Rs.16,000 and deficit debited to Capital Fund is Rs.4,300 then Expenditure is:
(a) 16,000
(b) 4,300
(c) 20,300
(d) None of these
Ans: C
Question. The Main purpose of Not-for- Profit organisation is :
(a) To earn profit
(b) to serve the society
(c) To improve the economy
(d) None of the above.
Ans: B
Question. If 10% Interest on Investment appearing in the Receipts side is Rs.7000, then the value of investment will be:
(a) Rs.1,00,000
(b) 70,000
(c) 56,000
(d) 49,000
Ans: B
Question. Entrance fees received amounted to Rs.50,000. In this 25% is to be capitalized. Mention the amount to be shown in income side of Income and Expenditure account:
(a) 12,500
(b)13,200
(c) 50,000
(d) 37,500
Ans: D
Question. Subscription outstanding for the year 2018-19 is Rs.2500. Subscription outstanding for the year 2017-18 was Rs.5000 out of which Rs.3000 were received during the year 2018-19. The outstanding subscription to be shown in the Income and expenditure for current year 2018-19 is :
(a) Rs. 500
(b) Rs.1000
(c) Rs.2500
(d) Rs.3000
Ans: A
Question. Furniture (Book value) Rs.5,000 were sold for Rs. 4,500. New Furniture worth Rs.10,000 were purchased during the year. The amount which is to be debited to Income and Expenditure account is :
(a) Profit on sale Rs.500
(b) Loss on sale Rs.500
(c) Sale of furniture Rs.4500
(d) Purchase of Rs.10000
Ans: B
Question. Stock of medicines on 1.4.18 were Rs.5000. Medicines purchased during the year is Rs.5000. Medicines sold during the year is Rs.2500. Closing stock of medicines are Rs.3000. Stock of medicines used during the year 2019 is:
(a) Rs.7000
(b) Rs.2500
(c) Rs.5000
(d) Rs.10000
Ans: A
Question. Receipts and payments account makes no difference between:
(a) Capital Receipts and Capital payments
(b) Revenue receipts and revenue payments
(c) Current year and previous year
(d) All the above.
Ans: D
Question. The account which shows classified summary of transactions of a Cash Book’ in a Not-for-Profit Organisation is called:
Question. Out of the following items, which is not shown in the ‘Receipts and Payments A/c’ of a not for profit organisation?
(a) Subscription received in advance
(b) Subscription due
(c) Last year subscription received
(d) All of the above
Answer: B
Question. Specific Donation received by NPO is shown in the
(a) Credit side of Income and Expenditure Account,
(b) Debit side of Income and Expenditure Account
(c) Liabilities side of Balance Sheet.
(d) As is decided by the management.
Answer: C
Question. Features of a partnership firm are :
(a) Two or more persons are carrying common business under an agreement.
(b) They are sharing profits and losses in the fixed ratio.
(c) Business is carried by all or any of them acting for all as an agent.
(d) All of the above.
Answer: A
Question. Following are essential elements of a partnership firm except:
(a) At least two persons
(b) There is an agreement between all partners
(c) Equal share of profits and losses
(d) Partnership agreement is for some business.
Answer: A
Question. Life Membership Fee received by NPO is accounted as
(a) Revenue Receipt.
(b) Capital Receipt.
(c) an Asset.
(d) Miscellaneous Receipt.
Answer: B
Question. Salaries paid during the year ended 31st March, 2020 is Rs. 36,000. Salaries paid in advance at the end of previous year were Rs. 54,000. The amount of Salaries to be debited to income and Expenditure Account for the year ended 31st March, 2020 will be
(a) Rs. 54,000.
(b) Rs. 36,000.
(c) Rs. 90,000.
(d) Rs. 18,000.
Answer: C
Question. If a General Donation of huge amount is received by a school, that donation is treated as :
(a) Revenue Receipt (Income)
(b) Capital Receipt (Liability).
(c) Assets
(d) Earned Income
Answer: B
Question. There are 200 members, each paying an annual subscription of Rs. 1,000; subscription received during the year Rs. 1,95,000; subscriptions received in advance at the beginning of the year Rs. 3,000 and at the end of the year Rs.2,000. Amount shown in Income & Expenditure Account will be :
(a) Rs. 2,00,000
(b) Rs. 1,96,000
(c) Rs. 1,94,000
(d) Rs. 2,01,000
Answer: A
Question. The opening balance of Prize Fund was Rs.32,800. During the year, donations received towards this fund amounted to Rs. 15,400; amount spent on prizes was Rs. 12,300 and interest received on prize fund investment was Rs.4,000. The closing balance of Prize Fund will be :
(a) Rs. 56,500
(b) Rs.64,500
(c) Rs.39,900
(d) Rs. 31,900
Answer: C
Question. The amount received for sale of old sports materials by a Non-profit organisation is shown in which of the following?
(a) Debit side of Income and Expenditure Account
(b) Liability side of Balance Sheet
(c) Credit side of Income and Expenditure Account
(d) Assets side of Balance Sheet
Answer: C
Question. If there is a ‘Match Fund’, then match expenses and incomes are transferred to:
(a) Income and Expenditure A/c
(b) Assets side of Balance Sheet
(c) Liabilities side of Balance Sheet
(d) Both Income and Expenditure A/c and to Balance Sheet
Answer: C
Question. Not-for-profit organisations prepare:
(a) Trading Account
(b) Trading & Profit and Loss Account
(c) Income and Expenditure Account
(d) All of the above
Answer: C
Question. The Receipts and Payments Account is a summary of:
(a) Debit and Credit balance of Ledger Accounts
(b) Cash Receipts and Payments
(c) Expenses and Incomes
(d) Assets and Liabilities
Answer: B
Question. Identify capital receipt from the following:
(a) Life Membership Fees
(b) Rent Receipt
(c) Entrance fees
(d) Sports expenses.
Answer: A
Question. General Donation received by NPO is shown in the
(a) Credit side of income and Expenditure Account,
(b) Debit side of income and Expenditure Account
(c) Liabilities side of Balance Sheet
(d) Assets side of the Balance Sheet.
Answer: A
Question. Subscriptions received in advance by a club are shown
(a) in the credit side of the Income and Expenditure Account.
(b) in the assets side of the Balance Sheet.
(c) in the liabilities side of the Balance Sheet.
(d) in the payments side of Receipts and Payments Account.
Answer: C
Question. Subscription received during the year 2019-20: Rs. 1,50,000. Outstanding Subscription as on 31st March, 2019: Rs. 1,00,000. The amount shown as subscription receipt will be
(a) Rs. 50,000.
(b) Rs. 1,50,000.
(c) Rs. 1,00,000.
(d) Rs. 1,25,000.
Answer: A
Question. Out of the following, which is Unrestricted Fund?
(a) Annuity Fund
(b) Sports Fund
(c) Capital Fund
(d) Endowment Fund
Answer: C
Question. Subscription received in advance during the current year is
(a) an income.
(b) an asset.
(c) a liability.
(d) None of these.
Answer: C
Question. The opening balance of Prize Fund was Rs.32,800. During the year, donations received towards this fund amounted to Rs. 15,400; amount spent on prizes was Rs. 12,300 and interest received on prize fund investment was Rs.4,000. The closing balance of Prize Fund will be :
(a) Rs. 56,500
(b) Rs.64,500
(c) Rs.39,900
(d) Rs. 31,900
Answer: C
Question. Salary paid in cash during the current year was Rs. 80,000; Outstanding salary at the end was Rs.4,000; Salary paid in advance last year pertaining to the current year was Rs.3,200; paid in advance during current year for next year was Rs.5,000. The amount debited to Income and Expenditure Account will be:
(a) Rs.85,800
(b) Rs.77,800
(c) Rs. 82,200
(d) Rs. 74,200
Answer: C
Question. How much amount will be shown in Income and Expenditure Account in the following case?
1-4-2019 31-3-2020
Creditors for Stationery 8,000 6,000
Stock of Stationery 3,000 3,200
During 2019-20 payment made for Stationery was Rs.60,000.
(a) Rs.57,800
(b) Rs.62,200
(c) Rs.61,800
(d) Rs.5 8,200
Answer: A
Question. Income and Expenditure Account is prepared on
(a) Cash Basis.
(b) Accrual Basis.
(c) Both (a) and (b).
(d) Sales Basis,
Answer: B
Question. Main source of Income for a Not-for-Profit Organisation is
(a) Rent.
(b) Salaries.
(c) Donations and Subscriptions.
(d) Sale of Assets.
Answer: C
Question. Credit purchase of stationery is Rs. 64,000, which is 80% of total purchase, compute cash purchase of stationery,
(a) Rs. 16,000
(b) Rs. 24,000
(c) Rs. 8,000
(d) Rs. 40,000.
Answer: A
Question. Choose NPO from the following:
(a) Reliance Industries Limited
(b) Indian Hoc Important Federation
(c) Infosys Ltd.
(d) Private Hospital
Answer: B
Question. Receipts and Payments Account is prepared on
(a) Cash Basis.
(b) Time Basis.
(c) Accrual Basis.
(d) Sales Basis.
Answer: A
Question. Amount received from sale of grass by a club should be treated as :
(a) Capital Receipt
(b) Revenue Receipt
(c) Asset
(d) Earned Income
Answer: B
Question. Legacy Donation received by NPO to be used for specific purpose is accounted as
(a) Revenue Receipt.
(b) Capital Receipt.
(c) an Asset.
(d) is decided by the Management.
Answer: B
Question. The amount of ‘Entrance Fees’ received by a Non-profit organisation (if it is received regularly) is shown in which of the following?
(a) Liability side of Balance Sheet
(b) Assets side of Balance Sheet
(c) Debit side of Income and Expenditure Account
(d) Credit side of Income and Expenditure Account
Answer: D
Question. Furniture as on 31st March, 2019 Rs. 4,40,000. Furniture (having Book value as on 1st April, 2018 of Rs. 40,000) sold at a loss of 20% on 31st December, 2018. Furniture is depreciated @ 10% p.(a) Furniture costing Rs. 3,00,000 was also purchased on 1st October, 2018. Calculate Loss on sale of furniture.
(a) Rs. 9,400
(b) Rs. 6,400
(c) Rs. 8,000
(d) Rs. 7,400
Answer: D
Question. Receipts and Payments Account is a summary of
(a) Debit and Credit balances of Ledger Account.
(b) Cash receipts and payments.
(c) incomes and Expenses.
(d) Balances of assets and liabilities.
Answer: B
Question. Subscription received by a school for organising annual function is treated as:
(a) Capital Receipt (i.e., Liability)
(b) Revenue Receipt (;.e., Income)
(c) Asset
(d) Earned Income
Answer: A
Question. Choose NPO from the following:
(a) Reliance Industries Limited
(b) Indian Hoc Important Federation
(c) Infosys Ltd.
(d) Private Hospital
Answer: B
Question. Title of the account which shows Surplus/Deficit of NPO is
(a) Cash Book.
(b) Income and Expenditure Account.
(c) Receipts and Payments Account.
(d) Balance Sheet.
Answer: B
Question. Out of the following items, which one is shown in the ‘Receipts and Payments Account’ of a not for profit organisation?
(a) Accrued subscription
(b) Outstanding salary
(c) Depreciation
(d) None of these
Answer: D
Question. Income and Expenditure Account reveals:
(a) Surplus or Deficiency
(b) Cash in Hand
(c) Net Profit
(d) Capital Account
Answer: A
Question. Salary paid for the year ended 31st March, 2020 amounted to Rs.75,000. How much amount will be recorded in Income and Expenditure Account in the following case?
31-3-2019 31-3-2020
Outstanding Salary 6,500 6,000
Prepaid Salary 1,200 1,000
(a) Rs.75,700
(b) Rs.74,300
(c) Rs.75,300
(d) Rs.74,700
Answer: D
Question. Receipts and Payments Account is a
(a) Real Account.
(b) Nominal Account.
(c) Personal Account.
(d) Revenue Account
Answer: A
Question. If there is a 'Match Fund', then Match Expenses and Match Incomes are transferred to
(a) Income and Expenditure A/(c)
(b) Assets side of Balance Sheet.
(c) Match Fund in Liabilities side of Balance Sheet.
(d) Both Income and Expenditure A/c and to Balance Sheet.
Answer: C
Question. Identify revenue receipt from the following:
(a) Donations for Building
(b) Subscription
(c) Life Membership Fees
(d) Legacy donation for Library.
Answer: B
Question. Donation received for a special purpose:
(a) Should be credited to Income and Expenditure Account
(b) Should be credited to separate account and shown in the Balance Sheet
(c) Should be shown on the assets side
(d) Should not be recorded at all.
Answer: B
Question. Calculate the amount of credit purchase from the following information:
Particulars | 1st April, 2019(Rs.) | 31st March, 2020 (Rs.) |
Creditors for Stationery | 4,600 | 11,800 |
During the year ended 31st March, 2020, payment made to creditors of Rs. 56,800.
(a) Rs. 54,000
(b) Rs. 64,000
(c) Rs. 74,000
(d) Rs. 44,000
Answer: B
Question. Out of the following items, which is not shown in the ‘Receipts and Payments A/c’ of a not for profit organisation?
(a) Subscription received in advance
(b) Subscription due
(c) Last year subscription received
(d) All of the above
Answer: B
Question. Subscription received in advance during the current year is :
(a) an income
(b) an asset
(c) a liability
(d) none of these
Answer: C
Question. Subscription received in cash during the year amounted to Rs.5,00,000; subscription outstanding at the end of previous year was Rs.20,000 and outstanding at the end of current year was Rs.25,000. Subscription received in advance for next year was Rs. 8,000 and received in advance during previous year was Rs.7,000. The amount credited to Income & Expenditure Account will be :
(a) Rs.5,04,000
(b) Rs.5,06,000
(c) Rs.4,96,000
(d) Rs.4,94,000
Answer: A
Question. Compute Rent for the year ended 31st March, 2020 from the following:
1.4.2019 31.3.2020
Outstanding Rent Rs. 19,000 Rs. 14,000
Prepaid Rent Rs. 5,600 Rs. 10,400
Answer: B
Question. Receipts and Payments Account is a :
(a) Personal Account
(b) Real Account
(c) Nominal Account
(d) Real and Nominal Account, both
Answer: B
Question.Income and Expenditure Account records transactions of:
(a) Revenue nature only
(b) Capital nature only
(c) Both revenue and capital nature
(d) Income of only revenue nature and expenditure of revenue and capital nature.
Answer: A
Question. Salaries paid during the year ended 31st March, 2020 is Rs. 36,000. Salaries paid in advance at the end of previous year were Rs. 54,000. The amount of Salaries to be debited to income and Expenditure Account for the year ended 31st March, 2020 will be
(a) Rs. 54,000.
(b) Rs. 36,000.
(c) Rs. 90,000.
(d) Rs. 18,000.
Answer: C
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MCQs for Accountancy CBSE Class 12 Chapter 1 Financial Statements of Not for Profit Organisations
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