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Punjab (PTB) · Chapter test · Free

2nd Year Principles of Accounting Chapter 2 TestThe Accounts of Non-Profit Making Organizations

30 marks · 40 minutes · 21 questions. Covers: CHAP 2: The Accounts of Non-Profit Making Organizations.

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2nd Year Principles of Accounting Chapter 2 Test

2nd Year · Principles of Accounting · Punjab (PTB)

Name: ____________Roll No: ________Class/Section: ________Date: ________Total marks: 30Time: 40 minutes

Q1. Multiple choice questions (Attempt all · 10 × 1 = 10)

  1. It is prepared by non-profit making organization to determine surplus or deficit:

    1. Trading account

    2. Profit and loss account

    3. Receipts and payment account

    4. Income and expenditure account

  2. Income and expenditure account records the transactions of:

    1. Revenue nature

    2. Capital nature

    3. Revenue and capital nature

    4. None of these

  3. Donations Rs.50,000, 100% capitalized should be recorded in:

    1. Receipts and payments account

    2. Income and expenditure account

    3. a & b

    4. Receipts and payments account and balance sheet

  4. In receipts and payment account:

    1. Credit transaction are not recorded

    2. Non-cash items are recorded

    3. “a” and “b”

    4. Cash transaction are not recorded

  5. If travelling expenses paid during the year Rs.1200 and amount debited to income and expenditure account is Rs.1,170 then the amount for prepaid travelling expenses will be:

    1. Rs.60

    2. Rs.1,130

    3. Rs.1,230

    4. Rs.30

  6. In cash book:

    1. Each entry is followed by narration

    2.  Ledger reference is recorded

    3. Each transaction is recorded in chronological

    4. All of the above

  7. Donations Rs.9000, 4/5th capitalized, the amount should be credited to income and expenditure account is:

    1. Rs.1,800

    2. Rs.7,200

    3. Rs.9,000

    4. Rs.900

  8. Receipts and payments account records transactions relating to:

    1. Past year

    2. Future year

    3. Present year

    4. All of the above

  9. Entrance fee, whole amount credited to income and expenditure account should be recorded in:

    1. Income and expenditure account

    2. Receipts and payment account and income and expenditure account

    3. Receipts and payments account and balance sheet

    4. All of these

  10. If salaries paid during the year is Rs.1,575 and amount debited to income and expenditure account is Rs.1,500 then the amount prepaid salaries will be:

    1. Rs.75

    2. Rs.1,500

    3. Rs.1,575

    4. Rs.1,425

Q2. Short questions (Attempt any 6 of 8 · 6 × 2 = 12)

  1. What is capital fund?

  2. Write the two differences between “Receipts and payments account” and “income and expenditure account”.

  3. What is special subscription?

  4. What are the advantages to prepare “Receipts and payments account”?

  5. What is the difference between donation and subscription?

  6. What is meant by life membership fee?

  7. What do you mean by Legacy?

  8. What is meant by non-profit making concerns?

Q3. Long questions (Attempt any 2 of 3 · 2 × 4 = 8)

  1. The following is the statement of Receipts and Payments of Mumtaz Hospital for the year ending 31st December 2022.

    Opening Balance Rs. Payments Rs.
    Cash 1000 Salaries 46,000
    Bank 16000 Diet Expenses 5000
    Govt. Security 360,000 Surgery Expenses 2400
    Receipts:   Office Expenses 1400
    Subscriptions 50,000 Miscellaneous Expenses 200
    Interest 18,000 Closing Balances:  
    Donations 8000 Bank 36,000
    Miscellaneous 600 Cash 2600
        Govt. Security 360,000
      453,600   453,600

    You are asked to prepare the Income and Expenditure Account for the year and balance sheet on 1st January 2022. The other assets on 1st January 2022 were: Furniture, Rs. 4000; Land, Rs. 100,000; Building Rs.300,,000; Instruments, Rs. 7000. The Govt. Securities of the face value of Rs. 4,00,000 (cost Rs. 360,,000). The subscriptions received include Rs. 20,000 for the year 2021 but Rs.14000 is outstanding for 2022 Interest received includes Rs. 400 for 2021 but Rs. 4600 is outstanding for 2022.

  2. The following is the Receipts and Payments Account of young man’s society for the year ending 31st December, 2022. You are required to prepare income and expenditure account for the year ending 31st December, 2022. Sport Material Valued on 31.12 .2022 at Rs. 8,000.

    Receipts and Payment Account
    Receipts Rs. Payments Rs.
    Balance 1-1-2022 6,970 Books 12,300
    Entrance fees 1,300 Printings and Stationaries 930
    Donations 12,000 Newspapers 2,220
    Subscriptions 17,130 Sports material purchased 10000
    Interest on investments 400 Repairs 1,300
    Sale of furniture (Book Value Rs. 2000) 1,370 Investments 4000
    Sale of old papers 930 Furniture 2000
    Receipts for recreations 1,730 Salaries 3000
    Miscellaneous Receipts 250 Balance 31-2-2022 6,330
      42,080   42,080

  3. Below is given the Receipts and Payments Account of Leo’s club. Lahore, Prepare income and expenditure account as on 31st December 2022 and a balance sheet as on that date, from it and subjoined information.

      Rs.   Rs.
    Balance b/d 4952 General expenses 2168
    Annual subscription 6520 Salaries 2200
    Life membership fees 1000 Furniture 3200
    Entrance fees 800 Rent 2240
    Miscellaneous Receipts 932 Printing 500
    Interest 160 Repairs 600
        Balance c/d 3456
      14,364   14,364

    On 31st December 2022 the annual subscriptions in areas amounted to Rs. 1400. Rs. 400 is to be written off as the depreciation on furniture. Capitalize the life membership fees.