Tag: prepration of income and expenditure account
Questions Related to prepration of income and expenditure account
'Subscriptions received in advance" pertaining to last year will be on _________ of the Subscription A/c prepared for the current year.
Subscription is the amount that is paid by members of NPO every year. It is the primary source of income of NPO. It is generally paid every month. It is the amount paid by members to keep their membership alive. An advance receipt of subscription from a member is an income received in advance. It is liability for NPO. So it is recorded on credit side of Subscription Account.
In case of a non profit organization rent of building is due but not yet received by it is considered as a/an ______________.
When any kind of income is due and has to be received by company in future it is known as accrued income and this type of income is an asset for firm.
The amount or property received by a non-profit organization as stated by the will of a deceased person is commonly referred to as ______________.
Legacy is the amount received by a non-profit organisation when a person has mentioned about transferring his property value to such organisation on his or her death. Hence, on death of that person, his property will be taken by the non-profit organisation.
Which of the following is correct treatment of legacy received by non-profit organization ?
Surplus revealed by income and expenditure account ___________________.
The balance sheet of a non-profit organization such as a charitable hospital doesn't contain the _____________.
When the balance sheet is prepared for any company set up to earn profit, the owner's equity is mentioned because it is funded by the owner to start the business.
It is the amount which a non-trading concern receives as per the will of a deceased person___________.
Legacy is an amount of property or money left to someone in a will. It refers to property received by virtue of a will of a deceased person. Acquisition of such property by an institution is a capital receipt because these are not received on a regular basis. Hence, it will not appear in income and expenditure account. It is shown in liabilities side of balance sheet.
Following details are available for Saturn social club. Opening balance of capital fund Rs. 4,67,600 Donation capitalized during the year Rs. 12,500 Surplus in Income & Expenditure A/c Rs. 18,750. Closing balance at capital fund must be ___________.
Closing balance for the capital fund can be calculated using the formula given below:
Absorption of production overhead costs on a marginal cost basis is unacceptable:
Absorption costing is a technique whereby each unit of output is charged with both fixed and variable production costs. The fixed production costs are treated as part of the actual production cost.
Income and Expenditure account is ______ to account like Profit and Loss account.
Income and Expenditure account is prepared by non-trading concern to reveal the surplus or deficit arising out of the operating activities during the accounting period. It is one of the final accounts of non-trading concern like the profit and loss account of the trading concern,