Chapter 01 : Accounting for Not-for-Profit Organisations
Name of Exam : CUET UG 2023
SECTION : 2 Domain (commerce)
Cuet commerce Domain MCQ Test 2023
(Q1) Which of the following is main source of income of
non-profit organisation?
(a) Sale of old books
(b) Sale of old furniture
(c) Received subscription
(d) Business
(c) Received subscription
(Q2) There are 500 members in Diamond Club, paying
an annual subscription of Rs 50 each. Subscription
received during the year Rs 20,000 including Rs 2,000
for next year. Calculate amount to be shown as
outstanding subscription.
(a) 7,000
(b) 5,000
(c) 25,000
(d) 18,000
(a) 7,000
(Q3) Donation can be
(a) general donation
(b) specific donation
(c) Both (a) and (b)
(d) None of these
(c) Both (a) and (b)
(Q4) In the final account of non-profit organisation,
closing balance of cash will be recorded in...
(a) receipt and payment account only
(b) balance sheet only
(c) income and expenditure account
(d) receipt and payment account and balance sheet both
(d) receipt and payment account and balance sheet both
(Q5) In the absence of any specific information,
entrance fees may be treated as
(a) revenue receipt
(b) capital receipt
(c) non-cash receipt
(d) deferred receipt
(a) revenue receipt
(Q6) Consider the following statements
I. Income and expenditure records both capital
and revenue items.
II. Receipt and payment account records only
revenue items during the year.
Choose the correct option
(a) Both are incorrect
(b) Both are correct
(c) Only (i) is correct
(d) Only (ii) is correct
(a) Both are incorrect
(Q7) Find the cost of medicines consumed, if
Opening stock of medicines 30,000
Purchases during the year 50,000
Closing stock 20,000.
(a) Rs 80,000
(b) Rs 60,000
(c) Rs 50,000
(d) Rs 40,000
(b) Rs 60,000
(Q8) For the year ending 31st March, 2022, the
following entries appeared related to subscription
received
Amt (Rs)
2020-21 5,000
2021-22 96,000
2022-23 10,400
The club has 300 members, paying annual
subscription of Rs 400 each. Subscription outstanding on 31st March, 2021 was Rs 8,000.
Calculate the amount of subscription to be shown
in the income and expenditure account?
(a) Rs 96,000
(b) Rs 1,11,400
(c) Rs 1,20,000
(d) Rs 91,000
(c) Rs 1,20,000
(Q9) What amount of rent will be transferred to debit
side of income and expenditure account, if rent
paid during the year was Rs 70,000, rent
outstanding at the end of the year Rs 6,000 and
rent outstanding at the beginning of the year
Rs 8,000?
(a) Rs 60,000
(b) Ra 68,000
(c) Rs 70,000
(d) Rs 72,000
(b) Ra 68,000
(Q10) On 15th April, 2021, assets of Ashish club was as
follows
Assets :
Land and building Rs 1,00,000,
Cash in hand Rs 30,000,
Furniture Rs 65,000,
Subscription receivable Rs 30,000.
Liabilities:
Bank overdraft Rs 1,25,000,
Outstanding salaries Rs 15,000.
Capital fund as on 1st April, 2021 will be
(a) Rs 85,000
(b) Rs 75,000
(c) Rs 1,10,000
(d) Rs 8,000
(a) Rs 85,000
(Q11) Consider the following information
Sports fund investment Rs 70,000
Donation for sports fund Rs 15,000
Sports prizes awarded Rs 10,000
Expenses on sports events Rs 8,000
Income from sports fund investment Rs 5,000
Calculate amount of sport fund that will be shown
in liability side of balance sheet.
(a) Rs 40,000
(b) Rs 38,000
(c) Rs 45,000
(d) Rs 72,000
(d) Rs 72,000
(Q12) Calculate the amount of locker rent to be transferred
to income and expenditure account.
Particulars 31st March, 2021 (Rs) 31st March, 2022 (Rs)
Outstanding Locker Rent 9,200 12,600
Advance Locker Rent 6,000 8,000
Locker rent received during the year 2021-22,
RS 64,000.
(a) Rs 65,400
(b) Rs 66,500
(c) Rs 66,00
(d) Rs 73,000
(a) Rs 65,400
(Q13) Opening balance of prize fund was Rs 16,400.
During the year, donations received towards this
fund amounted to Rs 7,700, while amount spent on
prizes was Rs 6,150 and interest received on prize
fund investment was Rs 2,000. The closing balance
of prize fund will be
(a) Rs 28,250 (b) Rs 32,250
(c) Rs 19,950 (d) Rs 15,950
(c) Rs 19,950
(Q14) Capital fund in non-profit organisation will be
(a) Total Assets − Total Liabilities
(b) Total Assets − External Liabilities
(c) Total Assets − Internal Liabilities
(d) Total Fund − Total External Liabilities
(a) Total Assets − Total Liabilities
(Q15) Receipt and payment account is the summary of
(a) bank balance
(b) capital account
(c) cash book
(d) income and expenditure account
(c) cash book
(Q16) The amount of subscriptions received in advance is
shown in
(a) liabilities side
(b) assets side of balance sheet
(c) payments side of receipts and payments account
(d) None of the above
(a) liabilities side
(Q17) Receipt and payment account generally shows
(a) a debit balance
(b) a credit balance
(c) surplus and deficit
(d) capital fund
(a) a debit balance
(Q18) Item that should be debited in the income and expenditure account of a college is
(a) tuition fees received from students
(b) equipment purchased for science laboratory
(c) amount of reward
(d) fines collected from students
(b) equipment purchased for science laboratory
(Q19) Receipt and payment account shows
(a) income and expenditure
(b) profit and loss
(c) saving and deficit
(d) cash receipts and payments
(d) cash receipts and payments
(Q20) Funds raised by non-profit organisation for its operation are credited to
(a) Capital Fund of NPO
(b) General fund of NPO
(c) Reserve Fund of Bank
(d) Both (a) and (b)
(d) Both (a) and (b)
(Q21) Which of the following cannot be recorded in the
receipt and payment account of a club?
(a) Payment made to workers
(b) Sale of old newspaper
(c) Loss on sale of fixed asset
(d) All of the above
(c) Loss on sale of fixed asset
(Q22) Hindhelp Charitable gets surplus from his income and
expenditure account of 65,000 in 2018-19. It will
be recorded in debit side of the ……… account.
(a) receipts and payments
(b) income and expenditure
(c) Both (a) and (b)
(d) None of these
(b) income and expenditure
(Q23) Pass journal entry for subscription recorded in the income and expenditure account.
(a) Income and Expenditure A/c Dr —
To Subscription A/c —
(b) Subscription A/c Dr —
To Income and Expenditure A/c
(c) Bank A/c Dr —
To Income and Expenditure A/c —
(d) None of the above
(b) Subscription A/c Dr —
To Income and Expenditure A/c
(Q24) Which of the following will be recorded in credit side of receipts and payments account?
(a) Rs 300 received from entrance fees
(b) Cash purchases of books Rs 700
(c) Donation received Rs 800
(d) Outstanding Rs 300 for repair
(b) Cash purchases of books Rs 700
(Q25) Profit or loss on sale of any fixed asset is treated as……… in concern of NPOs.
(a) capital income or loss
(b) revenue income or loss
(c) not considered while preparing account
(d) None of the above
(b) revenue income or loss
(Q26) Pass the journal entry for Royal Dance Club, whose
deficit is calculated 91,000 during 2019-20.
(a) Income and Expenditure A/c Dr 91,000
To Deficit A/c 91,000
(b) Deficit A/c Dr 91,000
To Income and Expenditure A/c 91,000
(c) Cash A/c Dr 91,000
To Income and Expenditure A/c 91,000
(d) None of the above
(b) Deficit A/c Dr 91,000
To Income and Expenditure A/c 91,000
(Q27) A non-profit organisation normally prepares ……
before preparing balance sheet.
(a) income and expenditure account
(b) real account
(c) trading account
(d) None of the above
(a) income and expenditure account
(Q28) Debit balance in receipts and payments account
was shown as 80,000, subscription received
amounted to 9,600 out of which ` 3,000 is related
to next year. According to you, what amount will be
shown in receipts and payments account?
(a) Rs 80,000
(b) Rs 89,600
(c) Rs 9,600
(d) Rs 86,600
(b) Rs 89,600
(Q29) What is an accounting treatment of cash received
for life membership fees?
(a) Debit in income and expenditure account
(b) Credit in income and expenditure account
(c) To be shown in liabilities column of balance sheet
(d) To be shown in assets column of balance sheet
(c) To be shown in liabilities column of balance sheet
(Q30) Which of the following is/are account(s) in NPO
where outstanding expenses, prepaid expenses, etc.
are not recorded?
(a) Income and expenditure account
(b) Balance sheet
(c) Receipts and payments account
(d) All of the above
(c) Receipts and payments account
CUET COMMERCE DOMAIN PDF DOWNLOAD LINK
Hints & Solutions
2.
Annual Subscription Amount ( )500 50 × = 25 000,
Subscription Received for Current Year = (18 000)
(20,000 − 2,000)
Outstanding Subscription = Rs 7,000
7. Cost of Medicines Consumed
= Opening Stock + Purchases − Closing Stock
= 30,000 + 50,000 – 20,000
= Rs 60,000
8. No item, either revenue or expenditure, pertaining to the past period or future period is entered in the income and expenditure account. Only current period items are recorded.
∴ 300 Members × 400 each = 1,20,000
9. Rent paid during the year = 70,000
( ) + Rent outstanding at the end = 6,000
( ) − Rent outstanding at the beginning = (8,000)
Rent amount to be transferred to income
and expenditure account. = Rs 68 000,
10. Assets = Land and Building + Subscription
Receivables + Funiture + Cash in Hand
= 1,00,000 + 30,000 + 65,000 + 30,000
=Rs 2 25 000
Liability = Bank Overdraft + Outstanding Salary
= 1,25,000 + 15,000 = Rs 1,40,000
Capital Fund = Assets − Liabilities
= 2,25,000 − 1,40,000 =Rs 85 000
11. Sports Fund = 70,000
( ) + Donation = 15,000
( ) − Sports prizes = (10,000)
( ) − Expenses = (8,000)
( ) + Income from investment. = 5,000
= Rs 72 000
12. Locker rent paid during the year = 64,000
+ Locker rent outstanding at
year end 2022 = 12,600
+ Advance locker rent received in
the year 2021 = 6,000
− Outstanding locker rent in the
year 2021 = (9,200)
− Advance locker rent received
year end 2022 = (8,000)
Locker rent to be shown in income
and expenditure account. = Rs 65 400
13. Closing Balance
= Opening Balance + Donations Received
+ Interest Received − Expenses
= 16 400 + 7,700 + 2 000 - 6,150= Rs 19,950
28. Amount transferred to receipts and payments account
will be = 80,000 + 9,600 = Rs 89,600
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