Accountancy
Not for profit organization:-1
Q1)what is N.P.O?
Ans :- not for profit organization are those organization which are engaged in rendering valuable services to the society or to their member they are not engaged in buying and selling activities.the primary objective of such organization is to render services without profit motive.
Q2)What are the 3 features of N.P.O?
Ans:- the following are the features of not for profit organization is given below:-
i) voluntary association:-
it is a voluntary association of some person.
ii) Entity:-
Such organization have a separate entity other than it's member.
iii) Objective:-
It's objective is to render services to it's member/society.
iv) Non profit motive:-
such organization carry on it's activities without profit motive.
Q3)Name the books of account prepared by N.P.O.
Ans:- i)cash book
ii) Ledger
Q4) what are the different financial statement prepared by N.P.O?
Ans:- i) receipt and payment account
ii) income and expenditure account
iii) balance sheet.
Q5) mention 2 distinction between profit seeking organization (trading organization)and not for profit seeking organization (non trading organization)
Ans:- 
Q6) what is receipt and payment account?
Ans:- Receipt and payment account is merely a summary of cash transaction under proper heads all cash receipt are entered on the debit side and cash payment are entered on the credit side of the account .it is prepared at the end of the accounting period from the cash book .it generally starts with an opening balance of cash or closing balance of each.
Q7) why/how receipt & payment account is prepared?
Ans:- i) To inform the member the amount received and spend during a particular period.
ii)To show a summary of all cash received and cash payment at different heads.
iii) To show the cash position at the end of the period.
Q8)What are the objective of receipt and payment account?
Ans:- the following are the objective of receipt and payment account are given below:-
a) Summary of receipt and payment:-
it show a summary of all cash receipt on different sources and cash payment at different heads.
b) cash position:-
It show the cash position at the end of a period.
c) preparation of income statement:-
it facilitates the preparation of the income and expenditure account.
Q9) what are the 3 features of receipt and payment account?
Ans:-i) summary of cash transaction:-
receipt and payment account is a summary of cash book showing receipt on the left hand side and payment on the right hand side
ii) Avoidance of outstanding items:-
receipt and payment does not include any outstanding expenses or income , depreciation in the value of asset
iii)Does not show surplus or deficit:-
Receipt and payment account are find out the cash bank balance does not show surplus or deficit.
Q10) mention two limitations of receipt and payment account?
Ans:- i) does not show surplus or deficit.
ii) avoidance of outstanding item.
Q11) what is income and expenditure account?
Ans:- income and expenditure account is a summary of all items of income and expenses which relate to the ongoing accounting year.it is prepared with the objective of finding out the surplus or deficit arising out the current income over current expenses , income & expenditure account is a nominal account.
Q12) what are the 3 features of income and expenditure account?
Ans:- The following are the features of income and expenditure account:-
i) Revenue account:-
income and expenditure account is a revenue account of a not for profit organization prepared at the end of a financial period for ascertaining the surplus or deficit of that period.
ii) Basis of accounting:-
it is prepared on accrual basis of accounting and accrued items are considered.
iii) Statement of income and expenses:-
it shows the sources of income and types of expenses particular period.
Q13)How are the following items are treated at the time of preparing income and expenditure account??
Ans:- i)Sale of old asset:-(capital receipt 👈)
sometimes a not for profit organization may sell some fixed asset if the same is not required by them.
ii)sale of old newspaper/periodicals-( revenue receipt) :-. any amount realized from the sale of old newspaper,periodical etc.
Q14) What is capital fund:-
the excess of asset over liability of a not for profit organization is called capital fund.
Q15)what is entrance fee:-
entrance fee are the sum of money received by an organisation for admitting a person as member of that organisation.it may be treated as revenue receipt or capital receipt.
Q16) meaning of non fund based accounting.
Ans:- non fund based accounting is a syatem of accounting under which no separate fund account is maintained for any specific activity.under this system,all items of income and expenses relating to any specific activity,for which no separate fund exist , is transferred to the income and expenditure account.
Q17) distinction between receipt and payment account & income and expenditure account.
Ans:-
Q18)what is the meaning of fund based accounting?
Ans:- Generally the term 'fund' means cash or cash equivalents it also refers to asset held for specific purpose which is not generally available for normal activities not for profit organisations receive 'funds' from it's member and non members.
Q19) mention any 3 distinction between find based accounting and non fund based accounting.
Ans:-
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