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CBSE Board Exam 2020: Check Important Questions & Answers for Class 12 Accountancy - Chapter 1 (Accounting for Not-for-Profit Organisation)

If you are appearing for CBSE Class 12th Board exams 2020, check this list of important questions and answers from Chapter 1 of Accountancy.

Feb 10, 2020 17:03 IST
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Important Questions & Answers for Class 12 Accountancy - Chapter 1
Important Questions & Answers for Class 12 Accountancy - Chapter 1

CBSE Class 12th Accountancy exam is scheduled for 5th March 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 exam 2019-20

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 and Expenditure 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.

CBSE Class 12 Accountancy Syllabus 2019-20 & Important Resources
 

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 8 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.

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.

 Chapter-wise Important Questions & Answers on Class 12 Microeconomics and Macroeconomics

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