MCQ Questions Chapter 1 Accounting for Not-for-Profit Organisation Class 12 Accountancy

MCQ Class 12

Please refer to MCQ Questions Chapter 1 Accounting for Not-for-Profit Organisation Class 12 Accountancy with answers provided below. These multiple-choice questions have been developed based on the latest NCERT book for class 12 Accountancy issued for the current academic year. We have provided MCQ Questions for Class 12 Accountancy for all chapters on our website. Students should learn the objective based questions for Chapter 1 Accounting for Not-for-Profit Organisation in Class 12 Accountancy provided below to get more marks in exams.

Chapter 1 Accounting for Not-for-Profit Organisation MCQ Questions

Please refer to the following Chapter 1 Accounting for Not-for-Profit Organisation MCQ Questions Class 12 Accountancy with solutions for all important topics in the chapter.

MCQ Questions Answers for Chapter 1 Accounting for Not-for-Profit Organisation Class 12 Accountancy

Question. Subscription received in cash Rs 60,000; subscription received in advance for next year Rs 3,000 and received in advance during previous year is Rs 2,000.Subscription in arrears at the end of current year Rs 5,400 . Amount credited to Income and Expenditure Account will be :
(a) Rs 53,600
(b) Rs. 55,600
(c) Rs. 66,400
(d) Rs. 64,400 

Answer

D

Question. How much amount will be shown in Income and Expenditure A/c in the following case:
         2019(Rs.)                                                       2020(Rs.)
Creditors for medicines.                                         10,000 12,000
Stock of Medicines.                                                8,000 13,000
Payment made for Medicines during 2019-20 was     Rs. 2,50,000

(a) Rs. 2,53,000
(b) Rs. 2,47,000
(c) Rs. 2,57,000
(d) Rs. 2,43,000

Answer

B

Question. Excess of Income over Expenditure is:
(a) Deficit
(b) Capital Fund
(c) Surplus
(d) Deficiency

Answer

D

Question. Opening balance of sports material was Rs 10,000. During the year, sports material purchased for Rs 12,000; Rs 3,000 of sports material were found defective and hence returned during the year. At the end of the year, unused stock of sports material were Rs. 16,500. Amount of Sports Material consumed during the year is:
(a) Rs. 1,500
(b) Rs. 3,500
(c) Rs. 5,500
(d) Rs. 2,500

Answer

D

Question. Total Assets at the end are Rs.2,25,000. External Liabilities are Rs. 1,00,000. If surplus for the year is Rs. 20,000, Opening Capital Fund will be:
(a) Rs. 1,05,000
(b) Rs. 1,25,000
(c) Rs. 25,000
(d) Rs. 1,00,000

Answer

A

Question. Receipts and Payments Accounts generally shows:
(a) A Debit balance
(b) A Credit balance
(c) Surplus or deficit
(d) Capital Fund

Answer

A

Question. Subscription received by a school for organizing annual function is a:
(a) Capital receipts
(b) Revenue receipts
(c) Assets
(d) Earned incomet

Answer

B

Question. Subscription received by a Library is:
(a) Capital receipt
(b) Revenue receipt
(c) Asset
(d) Unearned income

Answer

B

Question. Salary outstanding in the beginning of the year is Rs 10,000 and at the end of the year it is Rs 20,000, if the amount Debit to Income and Expenditure Account is Rs 1,00,000, what is the cash paid to Salary Account:
(a) Rs. 1,10,000
(b) Rs. 1,20,000
(c) Rs. 90,000
(d) Rs. 70,000

Answer

C

Question. In Receipts and Payments Account, items entered are:
(a) Capital receipts
(b) Revenue receipts
(c) Both a and b
(d) None of the above

Answer

C

Question. Income and Expenditure Account shows:
(a) Surplus
(b) Deficit
(c) Capital Fund
(d) Surplus or Defici 

Answer

D

Question. Subscription received in advance during the Current year:
(a) an Income
(b) an Assets
(c) a Liability
(d) an expense

Answer

C

Question. Amount received by sale of crockery should be treated as :
(a) Revenue Receipts
(b) Capital receipts
(c) Assets
(d) Unearned income

Answer

B

Question. Amount received from sale as grass by a club is:
(a) Capital receipt
(b) Revenue receipt
(c) Asset
(d) Liability 

Answer

B

Question. Subscription received for the year ended 31st march 2016 is Rs 1,80,000 ; subscription outstanding on 31st march 2015 is Rs 15,000 ( out of which Rs 10,000 is received in 2016 ) and subscription outstanding on 31st march 2016 is Rs 18,000. What will be the outstanding subscription for the year 2015- 2016 :
(a) Rs 18,000
(b) Rs 15,000
(c) Rs 13,000
(d) Rs 10,000

Answer

C

Question. Donation received for a special purpose is accounted as an:
(a) Asset
(b) Liability
(c) Income
(d) Fund.

Answer

D

Question. The two main sources of income of a Not for Profit Organisation is:
(a) Subscriptions
(b) Donations
(c) Both (a) and (b)
(d) Neither (a) nor (b)

Answer

C

Question. The transactions shown in Income and Expenditure Account are:
(a) Revenue in nature
(b) Capital in nature
(c) Both (a) and (b)
(d) Assets and Liabilities

Answer

A

Question. Cash purchase of stationary is 20% of total purchase of stationary of current year . If amount paid for stationary Rs 70,000 and the creditor for the stationary in the beginning and at the end is Rs 10,000 and Rs 20,000. ,calculate amount of total purchases of stationary for the current year .
(a) Rs 80,000
(b) Rs 1,00,000
(c) Rs 90,000
(d) 70,000

Answer

B

Question. The opening balance of tournament fund was Rs 32,800. During the year , donation received towards this fund amount to Rs 15,400 ; amount spent tournament was Rs 12,300 and interest received on tournament fund investment Rs 4,000 . The closing balance of tournament fund will be :
(a) Rs 56,500
(b) Rs 64,500
(c) Rs 39,900
(d) Rs 31,900

Answer

C

Question. Amount paid for stationary purchased Rs 45,000 . the creditor for stationary in the beginning and end of the year Rs 4,000 and Rs 6,500. Cash purchase of stationary is Rs 15,000 . calculate the amount of stationary purchased in the current year :
(a) Rs 47,500
(b) Rs 37,500
(c) Rs 52.500
(d) Rs 62,500

Answer

D

Question. Main source of income for NPO’s :
(a) subscription
(b) specific donation
(c) legacy
(d) entrance fees

Answer

A

Question. Subscription received in cash during the year Rs 40,000 ; subscription outstanding at the end of previous year was Rs 1,500 and outstanding at he end of current year was Rs 2,000 . Subscription received in advance for the next year was Rs 800. The amount credited to income & expenditure account will be :
(a) Rs 38,700
( b) Rs 39,700
( c) Rs 40,300
( d) Rs 41,300

Answer

B

Question. Subscription received for the year ended 31st march 2016 is Rs 2,00,000 ; subscription received in advance on 31st march 2015 is Rs 15,000 and subscription received in advance on 31st march 2016 is Rs 18,000. There 200 members each paying Rs 1000 per annum for annual subscription What will be the outstanding subscription for the year 2015- 2016 :
(a) Rs 5,000
(b) Rs 4,000
(c) Rs 3,000
(d) Rs 2,000

Answer

C

Question. Subscription received in advance in the current year is :
(a) An income
(b) An assets
(c) A liability
(d) Expense

Answer

C

Question. The total of income side of Income and Expenditure Account is more than the total of expenditure side by Rs.25,000. Rs.25,000 is ___________

Answer

Surplus

Question. Rent paid by Jaipur Club was Rs.40,000. If rent outstanding for the years ended 31stMarch, 2019 and 31st March, 2018is Rs. 15,000 and Rs. 2,000

Answer

Rs. 53,000

Question. Hospitals, schools, clubs, are examples of _______________ NPO

Answer

NPO

Question. Subscription income for the year is a _____________income. Revenue

Answer

Revenue

Question. General Donation is shown in _________________. Income and Expenditure Account

Answer

Income and Expenditure Account

Question. The Balance Sheet as at 31st March, 2019 of Rotary Club of Jaipur shows total asset at Rs. 5,99,500. If the creditors for Medicines and Rents is Rs.99,000 and Rs. 500 respectively and Surplus of the Club for the year was Rs. 50,000. The Opening Capital Fund was _____________

Answer

4,50,000 

Question. Society has 500 members each paying Rs. 100 as annual subscription. It received Rs. 40,000 towards subscription during the year. Subscription received in advance at the beginning of the year was Rs. 12,000. In the Receipts and Payments Account Subscription Received will be shown as ______________.

Answer

Rs. 40,000

Question. Donation for Building is shown in __________

Answer

side of balance sheet. Liabilities

Question. respectively. Rent shown in Income and Expenditure Account will be __________ .

Answer

.Rs. 53,000

Question. Subscription received in advance in the current year is shown on _________

Answer

side of Balance Sheet. Liabilities

Question. A club has 400 members each paying an annual subscription of Rs. 300. On 31st March, 2019 Advance Subscription is Rs. 2,000 and Outstanding Subscription is Rs. 7,000. Income and expenditure will be credited by_________ as subscription for the year ended 31st March, 2019.Rs.

Answer

Rs. 1,20,000

Question. Creditors for Stationary in the beginning of the year are added to the amount of stationary purchase while calculating the amount of stationary consumed during the year .

Answer

Rs. 1,20,000

Question. Both revenue and capital payment are shown on the expenditure side of Income and Expenditure Account.

Answer

(F)

Question. Life membership fees and Endowment Fund are examples of capital Receipts.

Answer

(T)

Question. Specific donations are shown in the asset side of Balance Sheet.

Answer

(F)

Question. A NPO distributes its surplus or deficit to its members.

Answer

(F)

Question. Capital Fund normally has a credit balance.

Answer

(F)

 Question. Outstanding subscription is an asset.

Answer

(T)

Question. Subscriptions in Arrears at the end of the year has a debit balance.

Answer

(T)

 Question.  Surplus increases the credit balance of capital.

Answer

(T)

 Question. Deficit in an NPO is debit balance of Receipts and Payments Account.

Answer

(F)

1. Guarantee of a profit is allowed even in case ofa) Loss
b) profit
c) both
Answer

1-a ]

1)Partners current account are opened when their capital accounts area) fixed
2) Partners capital accounts are opened when their capital accounts areb) fluctuating
c) both
d) none
Answer

[ 1-a, 2-c ]

1) Product methoda) amount of drawing is uniform
2) Partners capital accounts are opened when their capital accounts areb) amount of drawing is irregular
c) time intervals between the two drawings is also uniform
d) none
Answer

[1- b]

1) when partnership deed does not provide interest on capitala) interest on capital is not allowed
2) when partnership deed provides for interest on capital but is silent on whether it is charge or appropriationb) interest on capital is allowed in all circumstances
c) interest on capital is allowed if only profit is their
Answer

1-a, 2-c ]

If actual capital employed is 5,00,000 and capitalized value of average profit
is 4,00,000 goodwill would be
a) 1,00,000
b) (1,00,000)
c) Nil
Answer

[ 1-b, 2-a ]

MCQ Questions Chapter 1 Accounting for Not-for-Profit Organisation Class 12 Accountancy

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