Income and Expenditure Account

Q.

Distinguish between Receipt and Payment Account ana Income and Expenditure Account.

Q. Total Debt ₹12, 00, 000; Current Liabilities ₹4, 00, 000; Capital Employed ₹`12, 00, 000. Calculate Total Assets to Debt Ratio.

Q. On the basis of the following information, calculate Total Assets to Debt Ratio:

Particulars		₹	Particulars		₹
Capital Employed		50, 00, 000	Share Capital		35, 00, 000
Current Liabilities		20, 00, 000	10% Debentures		10, 00, 000
Land and Building		60, 00, 000	General Reserve		3, 00, 000
Trade Receivable		4, 00, 000	Surplus, i.e., Balance in Statement of Profit and Loss		2, 00, 000
Cash and Cash Equivalents		5, 00, 000
Investment (Trade)		1, 00, 000

Q. Total Debt ₹15, 00, 000; Current Liablities ₹5, 00, 000; Capital Employed ₹15, 00, 000. Calculate Total Assets to Debt Ratio.

Q. Capital Employed ₹8, 00, 000; Shareholders Funds ₹2, 00, 000. Calculate Debt to Equity Ratio.

Q. Total Assets ₹22, 00, 000; Fixed Assets ₹10, 00, 000; Capital Employed ₹20, 00, 000. There were no Long-term Investments.
Calculate Current Ratio.

Q.

How do you treat subscriptions in income and expenditure accounts?

Q.

The receipts and payments account is the summary of cash and bank transactions which helps in the preparation of _____________.

1. Receipts & Payments Account

2. Income & Expenditure Account

3. Balance sheet

4. None of these

Q.

State the meaning of Income and Expenditure Account.

Q.

Balance of Income and Expenditure Account shows ____

1. Cash in hand

2. Capital Fund

3. Net Profit

4. Excess of Income over Expenditure or vice-versa

Q.

In accounting for non profit organisation, the sale of old newspapers is generally considered as a/an

1. Expenses

2. Expenditure

3. Income

4. Capital receipt

Q.

If Income is Rs 16, 000 & amount of deficit debited to capital fund is Rs 4, 300, then expenditure is___

1. Rs 1600

2. Rs 4300

3. Rs 20300

4. All of these

Q.

Income and expenditure account reveals :

1. Cash in Hand

2. Net Profit

3. Capital Account

4. Surplus or Deficiency

Q.

From the following receipts and payments and information given below, Prepare Income and Expenditure Account and opening Balance Sheet of Adult Literacy Organisation as on December 31, 2006.


Information:
(i) Subscription outstanding as on 31.12.2005 Rs.2, 000 and on December 31, 2006 Rs 1, 500.
(ii) On December 31, 2006 Salary outstanding Rs.600, and one month Rent paid in advance.
(iii) On Jan. 01, 2005 organisation owned furniture Rs.12, 000, books Rs.5, 000.

Q.

Income and Expenditure Account is prepared-

1. By all Organisations

2. By Industrial Organisation

3. By Not-for-profit Organisation

4. By Business Organisation

Q.

"Income and Expenditure Account of a Not-for-Profit Organisation is akin to Profit and Loss Account of a business concern". Explain the statement.

Q. Capital Employed ₹10, 00, 000; Fixed Assets ₹7, 00, 000; Current Liablities ₹1, 00, 000. There are no Long-term Investments. Calculate Current Ratio.

Q.

Do we show legacies in income and expenditure account?

1. Capital nature only

2. Revenue nature only

3. Both revenue and capital nature

4. Income of only revenue nature and expenditure of revenue and capital nature

Q.

Which of the following is to be recorded in an income and expenditure account?

1. All of these

2. Purchase of a fixed asset

3. Capital expenditure incurred on a fixed asset

4. Profit on sale of fixed asset

Q. Income & Expenditure Account is similar to the account prepared for other organisations.

1. receipts and payment
2. profit and loss
3. cash
4. bank

Q.

What Are the Uses of Income and Expenditure Account?

Q.

During an year, a club received Rs 1, 00, 000 as entrance fees. According to the policy of the club, 40% of the entrance fees is to be capitalized. What amount shall be entered in Income & Expenditure account.

1. Rs 1, 00, 000

2. Rs 40, 000

3. None of these

4. Rs 40, 000

Q.

__________ expenditure is shown on the expense side of income and expenditure account.

1. Purchase of a fixed asset
   

2. Capital expenditure incurred on a fixed asset
   

3. Profit on the sale of a fixed asset
   

4. Sale of a fixed asset

Q.

How do you maintain a daily income and expenditure account?

Q.

Subscription income for the current year irrespective of whether the money is received or not is shown in _____

1. Cash accounting

2. Accrual accounting
   

3. Government accounting
   

4. Management accounting

Q.

Surplus is _____ to capital fund

1. Added

2. Deducted

3. No change

4. None of these

Q.

Expenditures greater than incomes of a non-profit organization give rise to a ___

1. Loss

2. Profit

3. Surplus

4. Deficit

Q. Explain the basic features of Income and Expenditure Account and Receipt and Payment Account.

Q.

Rs 20, 000 received as the annual membership subscription. Out of this, Rs 4, 000 is pertaining to the previous accounting period whereas Rs 2, 000 is receivable at the end of the current accounting period. Calculate the amount of subscription that will be shown in the income and expenditure account for this accounting.

1. None of these

2. Rs 9, 000

3. Rs 18, 000

4. Rs 10, 000

Q.

__________ is similar to profit and loss account prepared for other organisations.

1. Income & Expenditure Account

2. Receipts & Payments Account

3. Balance sheet

4. None of these