Balbharati solutions for Book-keeping and Accountancy 12th Standard Hsc Maharashtra State Board
Chapter 2 - Accounts of ‘Not for Profit’ Concerns [Latest edition]
Write the Word/ Term/ Phrase which can substitute of the following statement:
The Form of Organization providing services to society only. - Not for profit concern
An account which is prepared by Not for Profit concern instead of Profit and Loss Account. - Income and Expenditure Account
Donation received for a specific purpose. - Specific donation / Capital receipt
The receipts which are not recurring in nature. - Capital Receipt
An Account which records only revenue items in case of Not for profit concern. - Income and Expenditure Account
Accounts which records only cash transactions in case of Not for Profit Concern. - Receipts and Payments Account
The income which is earned during the year but not received during the year. - Outstanding income
The credit balance of Income and Expenditure Account. - Surplus
The excess of total assets over total liabilities of a Not for Profit concern. - Capital Fund
All such receipts which are non-recurring in nature and not forming a part a regular flow of income. - Capital receipts
Difficult Words & Meanings
- Not for Profit Concern: An organization that operates for a social, charitable, or community purpose rather than to make money for owners or shareholders.
- Income and Expenditure Account: A financial statement prepared by non-profit organizations, similar to a Profit and Loss Account, showing surplus or deficit for a period.
- Specific Donation: Money or goods given to an organization for a particular, pre-defined purpose.
- Capital Receipt: Money received by a business or organization that is not part of its regular trading income, often from the sale of assets or special donations, and is not recurring.
- Recurring: Happening repeatedly or regularly.
- Revenue Items: Income and expenses related to the normal day-to-day operations of an organization.
- Cash Transactions: Payments or receipts made in actual cash (or bank transactions) rather than on credit.
- Receipts and Payments Account: A summary of all cash and bank transactions (both capital and revenue) occurring during an accounting period.
- Outstanding Income: Income that has been earned by an organization during an accounting period but has not yet been physically received.
- Credit Balance: When the total credits in an account are more than the total debits. In an Income and Expenditure account, a credit balance indicates a surplus.
- Surplus: The amount by which an organization's income exceeds its expenditure over a certain period.
- Assets: Resources owned by an organization that have economic value and can be converted into cash.
- Liabilities: An organization's financial debts or obligations that arise during the course of its operations.
- Capital Fund: The accumulated surplus of a non-profit organization, representing the excess of its assets over its liabilities. It's equivalent to the capital of a profit-making entity.
- Non-recurring: Not happening again or not happening regularly; occasional.
