Balbharati solutions for Book-keeping and Accountancy 12th Standard Hsc Maharashtra State Board.
Chapter 2 - Accounts of ‘Not for Profit’ Concerns [Latest edition]
Select the most appropriate alternative from those given below.
Not for Profit Concern renders __________ services to public at large.
Income and Expenditure Account is a ________ Account
Outstanding subscription at the end of the Accounting Year represents _______ .
Subscription received in advance during the accounting year is_______ .
Excess of Income over Expenditure is termed as ___________ .
Not for Profit Concerns prepares _________ account instead of Profit and Loss account to know the result.
The closing balance of Receipts and Payments account usually represent _______ .
Not for Profit Organization is also called __________ organization.
Expenditure on Purchase of Building is a ________ Expenditure.
Difficult Words & Meanings
- Not for Profit Concern (Organization): An organization whose main goal is to provide services or promote a social cause, not primarily to make money for its owners.
- Renders: Provides or gives (a service, help, etc.).
- Income and Expenditure Account: A financial summary for non-profit groups, similar to a profit and loss statement, showing income earned and expenses incurred during a period to find out if there's a surplus (more income) or a deficit (more expenses).
- Nominal Account: In accounting, an account that records incomes, expenses, gains, or losses. These are temporary and closed at the end of an accounting year.
- Outstanding Subscription: Membership fees that are due from members but have not yet been paid to the organization for the current period.
- Liability: A financial obligation or debt that an organization owes to others.
- Asset: A resource with economic value that an organization owns or controls, expecting it to provide future benefit.
- Capital Fund: Represents the net worth or accumulated surplus of a not-for-profit organization, similar to owner's equity in a business.
- Subscription received in advance: Membership fees paid by members for a future accounting period, which the organization has not yet earned.
- Surplus: The excess of income over expenditure in a not-for-profit organization for a specific period.
- Deficit: The excess of expenditure over income in a not-for-profit organization for a specific period.
- Receipts and Payments Account: A summary of all cash and bank transactions (money received and money paid out) for a specific period, similar to a cash book.
- Capital Expenditure: Money spent on acquiring or improving long-term assets (like buildings, machinery) that will be used for more than one year.
- Revenue Expenditure: Money spent on day-to-day operational costs (like salaries, rent, repairs) whose benefits are consumed within one accounting year.
