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SAI INTERNATIONAL SCHOOL
Subject – ACCOUNTANCY
Assessment- 1 (Module No-1)

Topic/Sub-topic: NPO
General Instruction:

There should be 10 MCQ questions of the following skill

1. Knowledge based- 2 No of questions
2. Concept based- 3 No of questions
3. Understanding based- 3 No of questions
4. Application based- 2 No of questions
Please provide the KEY(answer in the form of option as a, b, c, d) with the question itself.

Receipts and Payments Account generally shows :
1 (a) A Debit Balance (b) A Credit Balance (c) Surplus or Deficit (d) Capital Fund KE
Ans. (a)
Income and Expenditure Account records transactions of :
(a) Revenue nature only
(b) Capital nature only
2 KA
(c) Both revenue and capital nature
(d) Income of only revenue nature and expenditure of revenue and capital nature
Ans. (a)
Income and Expenditure Account reveals :
3 (a) Surplus or Deficiency (b) Cash in hand (c) Net Profit (d) Capital Account CA
Ans. (a)
The amount of ‘Subscription received from members’ by a Non-profit organization is shown in
which of the following ?
(a) Debit side of Income and Expenditure Account
4 (b) Credit side of Income and Expenditure Account CD
(c) Liability side of Balance Sheet
(d) Assets side of Balance Sheet
Ans. (b)
Donation received for a special purpose :
(a) Should be credited to Income and Expenditure Account
(b) Should be credited to separate account and shown in the Balance Sheet
5 CA
(c) Should be show on the assets side
(d) Should not be recorded at all
Ans. (b)
Subscription received by a school for organizing annual function is treated as :
(a) Capital Receipt (i.e, Liability)
(b) Revenue Receipt (i.e, Income)
6 CH
(c) Asset
(d) Earned Income
Ans. (a)
The amount of ‘Entrance Fees’ received by a Non-profit organization (if it is received regularly)
is shown in which of the following ?
(a) Liability side of Balance Sheet
7 (b) Assets side of Balance Sheet UE
(c) Debit side of Income and Expenditure Account
(d) Credit side of Income and Expenditure Account
Ans. (d)
Out of following items, which one is shown in the Receipts and Payment Account ?
(a) Outstanding Salary
(b) Depreciation
8 (c) Life Membership Fees UA
(d) Accrued Subscription
Ans. (c)