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This section includes 7 InterviewSolutions, each offering curated multiple-choice questions to sharpen your Current Affairs knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Credit side balance in Income & Expenditure Account reveals :A. Excess of cash receipts over paymentsB. Excess of cash payments over receiptsC. Excess of expenditure over incomeD. Excess of income over expenditure |
| Answer» Correct Answer - D | |
| 2. |
Income and Expenditure Account reveals :A. Surplus or DeficiencyB. Cash in HandC. Net profitD. Capital Account |
| Answer» Correct Answer - A | |
| 3. |
Income and Expenditure Account is a :A. Personal AccountB. Real AccountC. Nominal AccountD. Real and Nominal Account, both |
| Answer» Correct Answer - C | |
| 4. |
Donation received for a special purpose :A. Should be credited to Income and Expenditure AccountB. Should be credited to separate account and shown in the Balance SheetC. Should be shown on the assets sideD. Should not be recorded at all. |
| Answer» Correct Answer - B | |
| 5. |
Receipts and Payments Account generally shows :A. A Debit balanceB. A Credit BalanceC. Surplus or DeficitD. Capital Fund |
| Answer» Correct Answer - A | |
| 6. |
Receipts and Payments Account is a :A. Personal AccountB. Real AccountC. Nominal AccountD. Real and Nominal Account, both |
| Answer» Correct Answer - B | |
| 7. |
Subscription received by a school for organising annual function is treated as:A. Capital Receipt (i.e., Liability)B. Revenue Receipt (i.e., Income)C. AssetD. Earned Income |
| Answer» Correct Answer - A | |
| 8. |
The Receipts and Payments Account is a summary of :A. Debit and Credit balance of Ledger AccountsB. Cash Receipts and PaymentsC. Expenses and IncomesD. Assets and Liabilities |
| Answer» Correct Answer - B | |
| 9. |
Out of following items. which one is shown in the Receipts and Payments Account?A. Outstanding SalaryB. DepreciationC. Lifo Membership FeesD. Accrued Subscription |
| Answer» Correct Answer - C | |
| 10. |
Not-for-profit organisations prepare :A. Trading AccountB. Trading & Profit and Loss AccountC. Income and Expenditure AccountD. All of the above |
| Answer» Correct Answer - C | |
| 11. |
Income and Expenditure Account records transactions of :A. Revenue nature onlyB. Capital nature onlyC. Both revenue and capital natureD. Income of only revenue nature and expenditure of revenue and capital nature. |
| Answer» Correct Answer - A | |
| 12. |
Whlch of the following represent capital receipt :A. Life Membership SubscriptionB. DonationC. SubscriptionD. Interest on Investments |
| Answer» Correct Answer - A | |
| 13. |
Amount received from sale of grass by a club should be treated as:A. Capital ReceiptB. Revenue ReceiptC. AssetD. Earned Income |
| Answer» Correct Answer - B | |
| 14. |
How are the following dealt with while preparing the final accounts of a club |
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Answer» 1. Match Fund investments Rs. 72,000 and Match Fund Bank Balance Rs. 3,500 will appear as assets in the Balance Sheet. 2. Interest on Match Fund Investments Rs.2,880 will be added to Match Fund and Match expenses will be deducted from the Match Fund. The net balance of Match Fund Rs. 77,380 will appear on the Liabilities side of the Balance Sheet. |
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| 15. |
How is Entrance Fees dealt with while preparing the final accounts for the year ended 31st March 2019 in each of the following alternative cases ? Case I During the year ended 31st March 2019 Entrance Fees received was Rs. 1,00,000. Case II. During the year ended 31st March 2019 Entrance Fees received was Rs. 1,00,000 . Out of this Rs. 25,000 was received from individuals whose membership is not yet approved. |
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Answer» Case I Entrance Fees credited to Income and Expenditure Account ,Rs. 1,00,000. Case II. Entrance Fees credited to Income and Expenditure Account , Rs. 75,000, Rs. 25,000 will be shown on the liabilities side of the Balance Sheet. |
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| 16. |
How are the following dealt with in the accounts of a Not-for-Profit Organisation ? |
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Answer» Case I. Prizes awarded Rs. 12,000 will be deducted from the Prize Fund. The balance of Rs. 38,000 will appear on the Liabilities side of the Balance Sheet. Match expenses will be debited to the income and Expenditure Account because there is no specific fund maintained to meet the expenses. Case II. Interest on the Match Fund investments will be added to the Match Fund (beacuse it is the income of the particular fund). from the total Match Fund match expenses will be deducted and the balance of Rs. 68,000 will appear on the Liabilities side of the Balance Sheet. Prizes awarded Rs 19,000 will be debited to the income and expenditure Account because there is no specific fund to meet this expense. |
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| 17. |
Subscription received in advance during the current year is :A. an incomeB. an assetC. a liabilityD. none of these |
| Answer» Correct Answer - C | |
| 18. |
Subscription received in cash during the year amounted to Rs 60,000, subscription received in advance for next year was Rs 3,000 and received in advance during previous year was Rs 2,000. Subscription in arrear at the end of current year was Rs 5,400. The amount credited to Income & Expenditure Account will be :A. Rs 53,600B. Rs 66,400C. Rs 55,600D. Rs 64, 400 |
| Answer» Correct Answer - D | |
| 19. |
Subscription received in cash during the year amounted to Rs 40,000, subscription outstanding at the end of pervious year was Rs 1,500 and outstanding at the end of current year was Rs 2,000. Subscription received in advance for next year was Rs 800. The amount credited to Income & Expenditure Account will be:A. Rs 38,700B. Rs 39,700C. Rs 40,300D. Rs 41,300 |
| Answer» Correct Answer - B | |
| 20. |
Subsription received in cash during the year amounted to Rs 5,00,000, subscription outstanding at the end of previous year was Rs 20,000 and outstanding at the end of current year was Rs 25,000. Subscription received in advance for next year was Rs 8,000 and received in advance during previous year was Rs 7,000. The amount credited to Income & Expenditure Account will be :A. Rs 5,04,000B. Rs 5,06,000C. Rs 4,96,000D. Rs 4,94,000 |
| Answer» Correct Answer - A | |
| 21. |
The opening balance of Prize Fund was Rs 32,800. During the year, donations received towards this fund amounted to Rs 15,400, amount spent on prizes was Rs 12,300 and interest received on prize fund investment was Rs 4,000. The closing balance of Prize Fund will be :A. Rs 56,500B. Rs 64,500C. Rs 39, 900D. Rs 31,900 |
| Answer» Correct Answer - C | |