We have compiled the NCERT MCQ Questions for Class 11 Accountancy Chapter 16 Accounting for Not-for-Profit Organisation with Answers Pdf free download covering the entire syllabus. Practice MCQ Questions for Class 11 Accountancy with Answers on a daily basis and score well in exams. Refer to the Accounting for Not-for-Profit Organisation Class 11 MCQs Questions with Answers here along with a detailed explanation.
Accounting for Not-for-Profit Organisation Class 11 MCQs Questions with Answers
Choose the correct one
Question 1.
Not-For-Profit Organisations prepares
(a) Income and Expenditure Account
(b) Profit and Loss Account
(c) Trading Account
(d) None of the above
Answer
Answer: (a) Income and Expenditure Account
Question 2.
The Receipts and Payments Account is the summary of
(a) Income and expenditures during current year
(b) Cash receipts and payments
(c) Debit and credit balances of ledger accounts
(d) Only cash receipts
Answer
Answer: (b) Cash receipts and payments
Question 3.
Subscription received in advance by a club during previous year are shown
(a) on the credit side of Income and Expenditure Account
(b) on the assets side of the Opening Balance Sheet
(c) on the assets side of the Closing Balance Sheet
(d) on the liabilities side of the Closing Balance Sheet
Answer
Answer: (b) on the assets side of the Opening Balance Sheet
Question 4.
Donations received for a specific purpose is a
(a) Assets
(b) Liabilities
(c) Revenue Receipts
(d) Capital Receipts
Answer
Answer: (d) Capital Receipts
Question 5.
Opening Cash Balance is shown in
(a) Income and Expenditure Account
(b) Receipts and Payments Account
(c) Closing Balance Sheet
(d) None of the above
Answer
Answer: (b) Receipts and Payments Account
Question 6.
The Receipts and Payments Account is a
(a) Real Account
(b) Nominal Account
(c) Personal Account
(d) None of the above
Answer
Answer: (a) Real Account
Question 7.
Subscription outstanding are
(a) an income
(b) an asset
(c) a liability
(d) An expenditure
Answer
Answer: (b) an asset
Fill in the blanks
Question 1.
Entrance Fees is treated as …………….. receipt.
Answer
Answer: Revenue
Question 2.
Subscriptions received in advance by a club are shown on the ……………. side of the Balance Sheet.
Answer
Answer: Liabilities
Question 3.
Payment of honorarium is treated as ………………. expenditure.
Answer
Answer: Revenue
Question 4.
Excess of income over expenditure is shown on the ……………… side of Income and Expenditure Account.
Answer
Answer: Debit side
Question 5.
In a Receipts and Payments Account the payments are recorded on the …………….. side.
Answer
Answer: Credit
Question 6.
Income and Expenditure Account is prepared by ………………. concerns.
Answer
Answer: Not-For-Profit
Question 7.
A debit balance in the Income and Expenditure Account denotes excess of …………… over …………….
Answer
Answer: Expenditure, Income
Question 8.
Subscription received by an institution is a …………….. receipt.
Answer
Answer: Revenue
Question 9.
Interest received on special fund investments will be added to ……………… fund in the Balance Sheet.
Answer
Answer: Special
Question 10.
Life membership fees received by a club are show in ………………..
Answer
Answer: Balance Sheet
Question 11.
Life membership fee received by an institution is a, …………….. receipt.
Answer
Answer: Capital
Question 12.
Subscriptions received in advance will figure in the ………………
Answer
Answer: Balance Sheet
Question 13.
Any amount received towards Endowment funds in a ……………… receipt.
Answer
Answer: Capital
Question 14.
Income and Expenditure Account is a ……………… account.
Answer
Answer: Nominal
Question 15.
Excess of expenditure over income is ……………… capital fund in the Balance Sheet.
Answer
Answer: Deducted from the
Question 16.
The closing debit balance in the Receipts and Payments Account indicates the ……………. balance at the end of the year.
Answer
Answer: Cash
Question 17.
Opening and closing balances of cash are …………….. in Receipts and Payments Account.
Answer
Answer: Entered
Question 18.
The Income and Expenditure Account is prepared on the basis of ……………. system, of accounting.
Answer
Answer: Mercantile
Question 19.
Income and expenditure matches all ……………… receipts against ……………….. payment pertaining to the relevant accounting year.
Answer
Answer: Revenue, Revenue
Question 20.
Receipts and Payments Account is a ……………………. account.
Answer
Answer: Real
State whether the following statements are true or false
Question 1.
Loss on the sale of furniture of a sports dub will be shown in the Receipts and Payments Account.
Answer
Answer: False
Question 2.
Receipts and Payments Account is nothing but a consolidated summary of the cash book.
Answer
Answer: True
Question 3.
Any subscriptions received in advance are treated as capital receipts and are therefore taken to the liabilities side of the balance sheet.
Answer
Answer: False
Question 4.
Receipts and Payments Account is a summary of all capital receipts and payments.
Answer
Answer: False
Question 5.
The Income and Expenditure Account is equivalent to Profit and Loss Account of a business enterprise.
Answer
Answer: True
Question 6.
The closing balance of Receipts and Payments Account reveals the surplus or deficit of a non-trading concern.
Answer
Answer: False
Question 7.
Life membership fee is totally credited to the Income and Expenditure Account.
Answer
Answer: False
Question 8.
The Receipts and Payments Account records receipts and payments of revenue nature only.
Answer
Answer: False
Question 9.
100% provision is made for outstanding fee in case of professional conems.
Answer
Answer: True
Question 10.
Entrance fees unless otherwise stated is to be taken as a capital receipt.
Answer
Answer: False
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