Entrance Fees

Q.

Entrance fees received by a club is treated as a _____

1. Capital Receipt

2. Revenue Expenditure

3. Capital Expenditure

4. Revenue Receipt

Q.

Which of the Following Is Not a Revenue Receipt?

1. Donations for Tournament

2. Donations for Tournament

3. Subscriptions

4. Entrance Fees

Q.

Show the treatment of the following items by a Not-for-Profit Organisation:

(i)	Annual subscription
(ii)	Specific donation
(iii)	Sale of fixed assets
(iv)	Sale of old periodicals
(v)	Sale of sports materials
(vi)	Life membership fee

Q.

Out of the following, identify the items to be shown in the Notes to Accounts on 'Other Expenses' :

(i) Rent for factory

(ii) Internet Expenses

(iii) Carriage Inwards

(iv) Salaries

(v) Leave Encashment Exp

(vi) Commission Allowed;

(vii) Bad Debts written off

(viii) Audit fee

(ix) Depreciation on Computers

(x) Computer Software amortized

Q.

Where we show entrance fees in the Balance Sheet?

1. Liability side of Balance Sheet

2. Asset side of Balance Sheet

3. Not shown in the balance sheet

4. None of these

Q.

A non-profit organization received Rs. 10, 000 as the entrance fee of a new member. If 20% of the fee has to be capitalized, what is the amount of fee needs to be shown in the income and expenditure account?

1. Rs. 2, 000

2. Rs. 8, 000

3. Rs. 9, 000

4. Rs. 10, 000

Q.

The following is the account of cash transactions of the Nari Kalayan Samittee for the year ended December 31, 2006:


You are required to prepare an Income and Expenditure Account after the following adjustments:

(a) Subscriptions still to be received are Rs 750, but subscriptions include Rs 500 for the year 2007.

(b) In the beginning of the year the Sangh owned building Rs 20, 000 and furniture Rs 3, 000 and Books Rs 2, 000.

(c) Provide depreciation on furniture @ 5% (including purchase), books @ 10% and building @ 5%.

Q.

Q.

Which of the following statements are true in case of entrance fees?

1. Entrance Fees

2. Life Membership Fees

3. Subscription

4. None of these

Q.

Identify which of the following items will be shown in the Note to Accounts on Other Expenses? (i) Salaries; (ii) Postage Expenses; (iii) Telephone and Internet Expenses; (iv) Rent for warehouse; (v) Carriage Inwards; (vi) Depreciation on computers; (vii) Computer Software amortised; (viii) Computer Hiring Charges; (ix) Audit fee; (x) Bonus.

Q. Answer the following question in only 'one' sentence.
What is 'entrance fees'?

Q. (Overdraft as per cash Book). Prepare Bank Reconciliation Statement as on 30th June, 2017 for Jyoti Sales Private Limited from the information given below:

Rs.
(vii) Amount wrongly debited by the bank. 2, 400

Q. During the year 2011, subscriptions received by a sports club were Rs. 80, 000. These included Rs.3, 000 for the year 2012. On the December 31, 2010, the amount of subscriptions due but not received was Rs.12, 000. Calculate the amount of subscriptions to be shown in Income and Expenditure Account as income from subscription.

Q.

PRACTICAL PROBLEMS

(Newly started Associations)

Following is the Receipts and Payments Account of Bavdhan Pensioners Association newly started on 01.04.2010.

Receipts and Payment Account for the year ending on 31-03-2011
Dr.							Cr.
Receipts		Amount Rs	Amount Rs	Payments	Amount Rs	Amount Rs
To Subscriptions received				By rent		6, 000
For 2010-2011		85, 000		By Travelling Expenses		2, 800
For 2011-2012		6, 900		By Expenses for get-together
For 2012-2013		2, 000		Function		3, 300
			93, 900	By Charity		1, 000
To Entrance Fees			11, 000	By Salaries		4, 500
To Donations			25, 000	By Furniture		30, 500
				By Fixed Deposit		50, 000
				By Balance c/d		31, 800
			1, 29, 900			1, 29, 900

Adjustments:

1) Outstanding Subscription for current year Rs 10, 000.

2) Entrance Fees are to be capitalized.

3) ‘Capital Fund’ should be created out of Entrance Fees and Surplus of the current year’.

4) Depreciate Furniture by Rs 2, 500.

You are required to prepare Income and Expenditure Account for the year ending on 31/03/2011 and Balance Sheet as on that date.

Q. Entrance fees occur very rarely in a non-profit organisation.

1. False
2. True

Q. Entrance fees received by a club is a capital receipt.

1. False
2. True

Q. From the following details calculate Net Purchases of Universal Ltd.
Opening stock =50, 000
Manufacturing expenses = 30, 000
Selling and distribution expenses =Rs. 20, 000
Administrative expenses =Rs. 10, 000
Financial expenses =Rs. 5, 000
Closing stock Rs. 25, 000
Sales Rs. 2, 40, 00
Gross profit on sale 25 %

1. Rs. 1, 20, 000
2. Rs. 95, 000
3. Rs. 1, 25, 000
4. Rs. 85, 000

Q. If credit purchases are 2000000 and cash purchases are 25 % of the total purchases. Find out cash flow from operating activities

Q. Entrance fees may also be called as _____________.

1. Any of the above
2. General donation
3. Specific donation
4. Admission fees

Q. Admission fee income should be ____________.

1. Capitalized
2. Treated as a Revenue
3. Treated as revenue unless the amount is pretty large
4. Treated as a Liability

Q. Entrance fees are shown on the liabilities side of the balance sheet.

1. True
2. False