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1.	State with reasons whether the following statements are TRUE or FALSE: Donations for specific purposes are always capitalized.
Answer» Correct Answer - TRUE

2.	Receipt and Payment Account of Shankar Sports club is given below, for the year ended March 31, 2017 Receipt and Payment Account for the year ending March 31, 2017 Prepare Income and Expenditure Account and Balance Sheet with help of following Information: Subscription outstanding on March 31, 2016 is Rs.1, 200 and Rs.2, 300 on March 31, 2017, opening stock of postage stamps is Rs.300 and closing stock is Rs. 200, Rent Rs.1, 500 related to 2015 and Rs.1, 500 is still unpaid. On April 1, 2016 the club owned furniture Rs.15, 000, Furniture valued at Rs. 22,500 On March 31, 2017, the club took a loan of Rs.20,000 (@ 10% p.a) in 2017.
Answer» Correct Answer - Deficit Rs.6,100, Opening Capital fund Deficit Rs.2,400, Total of Closing Balance Sheet Rs. 44,500

3.	State with reasons whether the following statements are TRUE or FALSE: Opening balance sheet is prepared when the opening balance of capital fund is not given.
Answer» Correct Answer - TRUE

4.	Receipt and Payment Account of Maitrey Sports Club showed that Rs. 68,500 were received by way of subscriptions for the year ended on March 31, 2017. The additional information was as under: 1. Subscription Outstanding as on March 31, 2016 were Rs. 6,500. 2. Subscription received in advance as on March 31, 2016 were Rs. 4,100, 3. Subscription Outstanding as on March 31, 2017 were Rs. 5,400 4. Subscription received in advance as on March 31, 2017 were Rs. 2,500. Show how that above information would appear in the final accounts for the year ended on March 31, 2017 of Maitrey Sports Club.
Answer» Correct Answer - Subscription credited to Income and Expenditure Account for the year ended on March 31, 2017 is Rs. 69,000. Subscription Outstanding as on 31.3.2017 is Rs. 5,400 and should be shown on the assets side of the Balance sheet as on March 31, 2017 and subscriptions of Rs. 2,500 received in advance as on March 31, 2017 on the liabilities side of the balance sheet as on March 31, 2017

5.	As at March 31, 2015 the following balances have been extrated from the books of the Indian Chartered Accountants Recreation Club and you are asked to prepare (1) Trading Account for ascertaining gross profit derived from running resturant and dining room and (2) Income and Expenditure Account for the year ended March 31, 2017 (3) and a Balance Sheet as at that date. On March 31,2016 stock of restaurant consisted of Rs. 900 and Rs. 60 respectively. Provide depreciations Rs. 60 on fixtures and fittings, Rs. 390 on billiard table and Rs. 560 on furniture.
Answer» Correct Answer - Excess of income over expenditure– Rs. 2,950: Total of Balance Sheet Rs. 51,700

6.	From the following particulars taken from the Cash Book of a health club, prepare a Receipts and Payments Account.
Answer» Correct Answer - Cash at Bank (balancing figure) Rs. 91,000

7.	State with reasons whether the following statements are TRUE or FALSE: The balancing figure on credit side of Income and Expenditure Account denotes excess of expenses over incomes.
Answer» Correct Answer - TRUE

8.	From the following Receipt and Payment Account of Jan Kalyan Club, prepare Income and Expenditure Account and Balance Sheet for the year ending March 31, 2017. Receipt and Payment Account for the year ending March 31, 2017 Additional Information:
Answer» Correct Answer - Surplus Rs.11,100 ,Opening Capital fund Rs.1,37,500, Total of Closing Balance Sheet Rs.1,60,800

9.	Prepare Income and Expenditure Account and Balance Sheet for the year ended March 31, 2016 from the following Receipt and Payment Account and Balance Sheet of culture club: Receipt and Payment Account for the year ending March 31, 2016 Balance Sheet for the year ending March 31, 2016
Answer» Correct Answer - Surplus Rs.31500, Total of Closing Balance Sheet Rs.80500

10.	From the following particulars , prepare Income and Expenditure account:
Answer» Correct Answer - Excess of income over expenditure Rs. 3,23,000

11.	How will you deal with the following items while preparing for the Bombay Women Cricket Club its income and expenditure account for the year ending 31.3.2017 and its Balance Sheet as on 31.3.2017: Give reasons for your answers.
Answer» Correct Answer - (a) Balance of Pavilion Fund Rs. 1,45,000; (b) Balance of Tournment Fund Rs. 4,100; (c) Life Membership fee to the Capitalised

12.	Following is the information given in respect of certain items of a Sports Club. Show these items in the Income and Expenditure Account and the Balance Sheet of the Club:
Answer» Correct Answer - Balance of Sports Fund Rs. 40,000.

13.	Following is the Receipt and Payment account of Rohatgi Trust : Receipt and Payment Account for the year ending December 31, 2017 Prepare Income and expenditure account for the year ended December 31, 2017, and a balance sheet as on that date after the following adjustments: Subscription for 2017, still owing were Rs. 7,000. Interest due on defence bonds was Rs.7,000, Rent still owing was Rs. 1,000. The Book value of investment sold was Rs. 80,000, Rs. 30,000 of the investment were still in hand. Subscription received in 2017 included Rs. 400 from a life member. The total furniture on January 1, 2017 was worth Rs.12,000. Salary paid for the year 2018 is Rs.2,000.
Answer» Correct Answer - Surplus Rs. 63,500, Total of Closing Balance Sheet Rs. 2,68,900

14.	Following Receipt and Payment Account was prepared from the cash book of Delhi Charitable Trust for the year ending December 31, 2017 Receipt and Payment Account for the year ending December 31, 2017 Prepare Income and expenditure account for the year ended December 31, 2017, and a balance sheet as on that date after the following adjustments: (a) It was decided to treat one-third of the amount received on account of donation as income. (b) Insurance premium was paid in advance for three months. (c) Interest on investment Rs.1,100 accrued was not received. (d) Rent Rs.600: salary Rs.900 and advertisement expenses Rs.1,000 outstanding as on December 31, 2018.
Answer» Correct Answer - Surplus Rs.21,400, Total of Closing Balance Sheet Rs.72,000

15.	State with reasons whether the following statements are TRUE or FALSE: Receipt and Payment Account does not differentiate between capital and revenue receipts.
Answer» Correct Answer - TRUE

16.	How would you treat the following items in the case of a ‘not-for-profit’ organisation? Table Tennis match expenses Rs. 4,000.
Answer» There is no specific fund. So the amount incurred on Table Tennis match expenses Rs. 4,000 would be shown on the debit side of Income and Expenditure Account. It is the case of expenses independent of any specific fund

17.	How would you treat the following items in the case of a ‘not-for-profit’ organisation? Receipts from Charity Show Rs. 7,000. Expenses on Charity Show Rs. 3,000.
Answer» There is no specific fund. Receipts from Charity Show would be shown on the credit side and expenses on charity show are deducted from the receipts and the net amount would be shown on the credit side of Income and Expenditure Account.

18.	The following is the account of cash transactions of the Nari Kalayan Samittee for the year ended December 31, 2017: You are required to prepare an Income and Expenditure Account after the following adjustments: (a) Subscription still to be received are Rs.750 , but subscription include Rs.500 for the year 2018. (b) In the beginning of the year the Sangh owned building Rs.20,000 and furniture Rs.3,000 and Books Rs.2,000. (c) Provide depreciation on furniture @5% (including purchase ), books @ 10% and building @ 5%.
Answer» Correct Answer - Surplus Rs. 24,040