Book-Keeping and Accountancy · Class 12 Commerce
Ch 2Accounts of 'Not for Profit' Concerns — Class 12 Book-Keeping and Accountancy, concept-first.
Every organisation set up in society is not established to earn profit. Alongside trading and manufacturing concerns run purely to make money, a very large number of organisations exist purely to provide a service — to their own members or to society at large — without any intention of distributing a profit to anyone.
Key concepts
Hover a concept to preview it and jump to its most relevant Q&A.
Meaning, Features and Examples of Not for Profit Concerns
A Not for Profit concern is an organisation — a club, hospital, school, library, trust, or association — formed to render service to its members or to society, not to earn and distribute profit.
Most relevant Q&A
In previous exams
How often this chapter’s concepts have been examined — real appearance data, never estimated.
Chapter contents
The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.
Meaning, Features and Examples of Not for Profit Concerns
Every organisation set up in society is not established to earn profit. Alongside trading and manufacturing concerns run purely to make money, a very large number of organisations exist purely to prov…
Receipts and Payments Account — Meaning and Features
Whatever else a Not for Profit concern eventually reports, it always starts by simply recording cash — every rupee received and every rupee paid — over the year.
Income and Expenditure Account — Meaning, Features and Distinction from Receipts and Payments Account
The Receipts and Payments Account tells us how much cash moved during the year, but a Not for Profit concern's members are really interested in a different question: did the organisation's activities…
Preparing the Income and Expenditure Account and Balance Sheet; Capital Fund
Since most Not for Profit concerns keep only a Receipts and Payments Account through the year, the Income and Expenditure Account and the Balance Sheet must be prepared out of it at the year end, usin…
Treatment of Subscriptions, Donations, Legacies, Entrance Fees and Life Membership Fees
A handful of items recur in almost every Not for Profit concern's accounts and need a settled, standard treatment.
Exercises
+−Show 6 questionsHide questions6 questions
- Q1State the meaning of a 'Not for Profit' concern. State any four of its features.Free
- Q2Distinguish between Receipts and Payments Account and Income and Expenditure Account.Free
- Q3State the meaning of Income and Expenditure Account. State any four of its features.Preview
- Q6Explain the accounting treatment of (i) Entrance Fees and (ii) Life Membership Fees in the final accounts of a Not for Profit concern.Preview
- Q7Distinguish between a General Donation and a Specific Donation. How is a Legacy treated in the accounts of a Not for Profit concern?Preview
- Q8How would you treat the following items while preparing the final accounts of a Not for Profit concern? (i) Sale of old newspapers (ii) Sale…Preview
Sample & Board Papers
Sample papers and previous-year board questions for this subject.
+−Show 27 questionsHide questions27 questions
- Q1Write the word/phrase/term, which can substitute the following sentence. Donation received for a specific purpose.Preview
- Q2Answer in one sentence only. What is ‘Legacy’?Preview
- Q3Aurangabad University prepares _______ Account instead of Profit and Loss Account.Preview
- Q4Cash receipts which are recurring in nature are called as__________ Receipts.Preview
- Q5From the following Receipts and Payments account of Shahu College, Kolhapur for the year ending 31st March, 2020 and additional information,…Preview
- Q6Write the word/phrase/term, which can substitute the following sentence. Donation received for a specific purpose.Preview
- Q7Library Books ₹______? Less 10 % Depreciation ₹ 5,000 = ₹ 45,000Preview
- Q8State whether the following statement is True or False with reasons. Not for Profit concerns do not prepare Balance Sheet. (a) True (b) Fals…Preview
- Q9Income and Expenditure Account is a ________ Account. (a) Capital (b) Real (c) Personal (d) NominalPreview
- Q10From the following Receipts and Payments Account of “Matsyodari Engineering College, Aurangabad” for the year ending on 31 st March, 2020 an…Preview
- Q11Find the odd one: (a) Audit Fees (b) Insurance (c) Medical Expenses (d) Sundry ReceiptsPreview
- Q12Not for profit concerns, do not prepare balance sheet. (a) Agree (b) DisagreePreview
- Q13Income and Expenditure Account is a ________ Account. (a) Capital account (b) Real account (c) Personal account (d) Nominal accountPreview
- Q14Write the word/phrase/term which can substitute of the following statement: The debit balance of Income and Expenditure Account.Preview
- Q15Dr. Anish Korgaonkar started the practice of Medical Practioner on 1 st April 2019. He gives you the Receipts and Payments Account for the y…Preview
- Q16Excess of income over expenditure in ‘Not for Profit Concern’ is termed as ______. (a) Deficit (b) Profit (c) Surplus (d) LossPreview
- Q17Income and Expenditure Account is a ______ account.Preview
- Q18‘Not for profit concerns’ do not have profit motive. (a) Agree (b) DisagreePreview
- Q19Given below is the Balance Sheet of ‘Bhanubai Mahila Seva Kendra’ as on 1st April 2019 and Receipts and Payments account for the year ending…Preview
- Q20Complete the table: | Income | Expenditure | Deficit | | --- | --- | --- | | 25,000 | .......... | 2,000 |Preview
- Q21Not for profit organization is also called ______ organization. (a) Service (b) Trading (c) Profit Making (d) CommercialPreview
- Q22Write the word/phrase/term, which can substitute the following sentence. An account which records only revenue items in the case of a not-fo…Preview
- Q23Credit side of receipts and payments account shows cash ______.Preview
- Q24From the following transactions of Samarth Vyayamshala, Chandgad, prepare the Income and Expenditure Account and Balance Sheet as on 31 st M…Preview
- Q25Answer the following question in only 'one' sentence: Which receipts are called as capital receipts?Preview
- Q26Write a word / term / phrase as a substitute for the following statement: A gift given by a person to a concern as per the will.Preview
- Q27Q. 6. Divya Library, Buldhana showed the following position of their accounting. Consider the adjustments given and prepare Income and Expen…Preview
More questions
5 Q+−Show 2 questionsHide questions2 questions
+−Show 3 questionsHide questions3 questions
- Q9From the following information relating to Junior Sports Club as on 1st April, 2023, calculate the amount of its Capital Fund: | Assets | Rs…Free
- Q10From the following information, calculate the amount of Subscription to be credited to the Income and Expenditure Account for the year ended…Preview
- Q11Following is the Receipts and Payments Account of Sunrise Sports Club for the year ended 31st March, 2024: | Receipts | Rs | Payments | Rs |…Preview