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Accountancy · Class 12 Commerce

Ch 2Accounts of Not-for-Profit Organisation — Class 12 Accountancy, concept-first.

Every organisation is not run with the objective of earning profit. Alongside profit-seeking businesses, a very large part of everyday economic life is carried on by Not-for-Profit Organisations (NPOs) — sports clubs, cultural societies, charitable hospitals and schools, professional associations (such as a Chartered A…

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Income and Expenditure Account

Income and Expenditure Account

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In previous exams

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CA Foundation

1 concept · 1 appearance

2025

Chapter contents

The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.

1

Meaning and Features of Not-for-Profit Organisations

Every organisation is not run with the objective of earning profit. Alongside profit-seeking businesses, a very large part of everyday economic life is carried on by Not-for-Profit Organisations (NPOs…

2

Receipts and Payments Account

The Receipts and Payments Account is the starting point of an NPO's accounting record for the year — in practice, it is simply a classified summary of the cash book (cash and bank columns combined) pr…

3

Income and Expenditure Account and Its Distinction from the Receipts and Payments Account

The Income and Expenditure Account is the NPO's equivalent of a Profit and Loss Account. It is prepared from the Receipts and Payments Account plus additional information about outstanding and prepaid…

4

Capital Fund, Statement of Affairs and the Balance Sheet of an NPO

Because a not-for-profit organisation has no proprietor, it has no 'Capital' account in the business sense.

5

Treatment of Special Items: Subscriptions, Entrance Fees, Life Membership, Donations, Legacies and Sale of Assets

Several recurring items need special, careful treatment when moving from the Receipts and Payments Account to the Income and Expenditure Account and Balance Sheet.

Exercises

+Show 5 questions5 questions
  1. Q10From the following Receipts and Payments Account of Friends Recreation Club for the year ended 31st March 2024, prepare an Income and Expend…Free
  2. Q11The following is the Receipts and Payments Account of Golden Age Charitable Trust for the year ended 31st March 2024. Prepare the Income and…Free
  3. Q12From the following Receipts and Payments Account of Study Circle for the year ended 31st March 2024, prepare an Income and Expenditure Accou…Preview
  4. Q13From the following Receipts and Payments Account of City Welfare Association for the year ended 31st March 2024, prepare an Income and Expen…Preview
  5. Q14City Public Library's Balance Sheet as on 1st April 2023 showed: Cash at Bank ₹18,000, Books ₹60,000, Furniture ₹15,000, Outstanding Subscri…Preview

Sample & Board Papers

Sample papers and previous-year board questions for this subject.

+Show 34 questions34 questions
  1. Q1Income and Expenditure account is a : (a) Representative Personal Account (b) Real Account (c) Nominal Account (d) Personal AccountPreview
  2. Q2There are 500 members in a club each paying ₹ 100 as annual subscription. Subscription due but not received for the current year is ₹ 200. S…Preview
  3. Q3Give four examples for revenue receipts of Not-for-Profit organisation.Preview
  4. Q4Compute Capital Fund of Salem Sports Club as on 1.4.2019. | Particulars | ₹ | Particulars | ₹ | | --- | --- | --- | --- | | Sports equipment…Preview
  5. Q5(a) The following is the summary of cash transactions of Delhi Literary Club for the year ending 31st March 2019. Delhi Literary Club — Rece…Preview
  6. Q6Income and Expenditure Account is prepared to find out : (a) surplus or deficit (b) profit or loss (c) financial position (d) cash and bank…Preview
  7. Q7Donation received for a specific purpose is ________. (a) Revenue expenditure (b) Revenue receipt (c) Capital expenditure (d) Capital receip…Preview
  8. Q8What is legacy ?Preview
  9. Q9How will the following appear in the final accounts of Marthandam Women Cultural Association ? | Particulars | ₹ | | --- | --- | | Stock of…Preview
  10. Q10(a) From the following particulars of Tamil Educational Society, prepare Receipts and Payments accounts for the year ended 31st March, 2019.…Preview
  11. Q11There are 300 members in a club each paying ₹ 100 as annual subscription. Subscription due but not received for the Current Year is ₹ 200. S…Preview
  12. Q12Find the odd one out from the following. (a) Audit fees (b) Electricity charges (c) Life membership fees (d) Telephone chargesPreview
  13. Q13Give four examples for revenue expenditure of not-for-profit organisation.Preview
  14. Q14Classify the following expenditure of not-for-profit organisation as Capital or Revenue. (i) Honorarium (ii) Purchase of sports equipment (i…Preview
  15. Q15(a) From the following particulars of Trichy Educational Society, prepare Receipts and Payments account for the year ended 31st December, 20…Preview
  16. Q16(a) From the following Receipts and Payments account of Trichy Recreation club, prepare Income and Expenditure account for the year ended 31…Preview
  17. Q17Choose the incorrect pair. (a) Sale of old sports materials - Capital receipt (b) General donation - Revenue receipt (c) Subscription for bi…Preview
  18. Q18Income and Expenditure Account is prepared to find out : (a) Surplus or deficit (b) Profit or loss (c) Financial position (d) Cash and Bank…Preview
  19. Q19Subscription due but not received for the current year is : (a) An Expense (b) An Asset (c) An item to be ignored (d) A LiabilityPreview
  20. Q20What is Receipts and Payments Account ?Preview
  21. Q21From the following details calculate the printing and stationery to be debited to Income and Expenditure Account for the year ending 31st Ma…Preview
  22. Q22(a) From the following particulars of Poompuhar Literary Association, prepare Receipts and Payments account for the year ended 31st March, 2…Preview
  23. Q23(a) From the following Receipts and Payments account, prepare Income and Expenditure account of Kumbakonam Basket Ball Association for the y…Preview
  24. Q24Income and Expenditure account is a : (a) Representative Personal A/c (b) Real A/c (c) Personal A/c (d) Nominal A/cPreview
  25. Q25There are 500 members in a Club each paying ₹ 100 as Annual Subscription. Subscription due but not received for the Current year is ₹ 200; S…Preview
  26. Q26Give two examples for Non cash items of Not-for-Profit organisation.Preview
  27. Q27How will the following appear in the Final accounts of Karaikudi Sports Club for the year ending 31st March 2024 ? | Particulars | ₹ | | ---…Preview
  28. Q28(a) From the following Receipts and Payments account of Tenkasi Thiruvalluvar Manram, prepare Income and Expenditure account for the year en…Preview
  29. Q29The term "fund" refers to : (a) Fixed Assets (b) Current Liabilities (c) Non-current Assets (d) Working CapitalPreview
  30. Q30Legacy is a : (a) Revenue receipt (b) Revenue expenditure (c) Capital receipt (d) Capital expenditurePreview
  31. Q31Receipts and Payments account is a : (a) Personal A/c (b) Nominal A/c (c) Representative Personal A/c (d) Real A/cPreview
  32. Q32Compute income from subscription for the year 2018 from the following particulars relating to a club. | Particulars | 1.1.2018 (₹) | 31.12.2…Preview
  33. Q33How will the following items appear in the Final accounts of a Club for the year ending 31st March 2018 ? Receipts and payments Account for…Preview
  34. Q34(a) From the information given below, prepare Receipts and Payments account of Chennai Mahalakshmi Mahalir Mandram for the year ended 31st D…Preview

More questions

9 Q
+Show 6 questions6 questions
  1. Q1What is a Not-for-Profit Organisation? State its meaning and any four features that distinguish it from a profit-seeking business enterprise…Free
  2. Q2State the meaning of a Receipts and Payments Account and explain any four of its features.Free
  3. Q3Distinguish between the Receipts and Payments Account and the Income and Expenditure Account under any five points.Preview
  4. Q4How would a not-for-profit organisation treat a 'Specific Donation' differently from a 'General Donation'? Give reasons for the difference i…Preview
  5. Q5Explain the accounting treatment of Life Membership Fees and Entrance/Admission Fees received by a not-for-profit organisation.Preview
  6. Q6Explain, with reasoning, how outstanding subscription and subscription received in advance — at both the beginning and the end of the year —…Preview
+Show 3 questions3 questions
  1. Q7From the following information, calculate the amount of subscription to be shown in the Income and Expenditure Account for the year ended 31…Free
  2. Q8From the following details relating to a cultural society, calculate the subscription to be credited to the Income and Expenditure Account f…Preview
  3. Q9From the following particulars of a welfare association as on 1st April 2023, prepare a Statement of Affairs and find out the Capital Fund a…Preview