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🏫 Board📒 Accountancy

Accounting for Not-for-Profit Organisation

10 Board Accountancy previous year questions on Accounting for Not-for-Profit Organisation — options free on every question; 1 include the answer & explanation free, the rest unlock with PYQ Pass.

Q1 FREE PREVIEW

Payment of honorarium to Secretary is treated as

a

Capital expenditure

b

Revenue expenditure

c

An income

d

All of these

✓ Correct answer: b)

Revenue expenditure

Explanation

Correct Answer: B) Revenue Expenditure

Why this option is correct?

Honorarium paid to the secretary is a regular payment for services rendered.
It does not create any long-term asset, so it is treated as revenue expenditure.

Why other options are wrong?

A) Capital Expenditure
Capital expenditure results in creation of fixed assets, but honorarium does not create any asset.

C) Income
Payment made cannot be treated as income; it is an expense.

D) All of these
Since only revenue expenditure is correct, this option is incorrect.

Q2

Which of the following is a revenue expenditure ?

a

Purchase of furniture

b

Payment of salaries

c

Construction of building

d

Purchase of machinery

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Q3

Entrance fee is treated as

a

Capital Receipt

b

Revenue Receipt

c

Donation

d

Subscription

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Q4

Donations received for specific purpose are treated as

a

Asset

b

Liability

c

Capital receipt

d

Expense

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Q5

The summary of cash and bank transaction shows

a

Cash A/c

b

Bank A/c

c

Receipts and Payments A/c

d

Bank overdraft

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Q6

Which of the following is a capital receipt?

a

Subscription

b

Donation

c

Building fund

d

Interest on fixed deposit

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Q7

The surplus / deficit of not-for-profit organisation is ascertained by

a

Income & Expenditure A/c

b

Receipts and Payments A/c

c

Profit & Loss A/c

d

Income Statement

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Q8

Subscription received in advance is

a

Asset

b

Income

c

Expense

d

Liability

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Q9

What is used to prepare the opening Balance Sheet ?

a

Income and Expenditure A/c

b

Receipts & Payments A/c

c

Cash A/c

d

Capital A/c

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Q10

Which of the following shows transactions related to one year?

a

Receipts and Payments A/c

b

Income & Expenditure A/c

c

Balance Sheet

d

None of these

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