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

Receipts & Payments Account

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Income & Expenditure Account

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Balance sheet

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None of these

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Solution

The correct option is B
Income & Expenditure Account

Income & expenditure account is similar to profit and loss account prepared for other organisations.

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Similar questions

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

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

Following is the Receipt and Payment Account of Indian Sports Club, prepared Income and Expenditure Account, Balance Sheet as on December 31, 2006:

Receipt and Payment Account for the year ending December 31, 2006
Receipts	Amount Rs	Payments	Amount Rs
Balance b/d	7,890	Salary	11,000
Subscriptions	52,000	Electric charges	5,500
Life member ship fee	2,200	Billiard Table	17,500
Entrance fee	3,200	Office expenses	4,100
Tournament fund	26,000	Printing and Stationery	2,300
Locker Rent	1,250	Tournament expenses	18,500
Sale of old sports goods (Costing Rs 2,200)	2,500	Repair of ground	2,000
Sale of Old Newspaper	750	Furniture purchased	7,700
Legacy	37,500	Sports equipments	12,000
		Cash in Hand	12,690
		Cash at Bank	10,000
		Fixed Deposit (on 1.10.06 for 10% p.a)	30,000

	1,33,290		1,33,290

Other Information:

Subscription outstanding was on December 31, 2005 Rs 1,200 and Rs 3,200 on December 31, 2006. Locker rent outstanding on December 31, 2006 Rs 250. Salary outstanding on December 31, 2006 Rs 1,000.

On January 1, 2006, club has Building Rs 36,000, furniture Rs 12,000, Sports equipments Rs 17,500. Depreciation charged on these items @ 10% (including Purchase).

Q. Income and Expenditure account is ________ by balance sheet whereas Receipt and Payment account is __________by balance sheet

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.

Receipt and Payment Account for the year ending as on December 31, 2006
Receipts		Amount Rs	Payments	Amount Rs
Balance b/d			General Expenses	3,200
Cash in hand		4,000	News paper	1,850
Cash at Bank		15,550	Electricity	3,000
Subscriptions			Fixed deposit with bank (on 31.06.2006) @ 10% p.a.	18,000
2005	1,200		Fixed deposit with bank (on 31.06.2006) @ 10% p.a.	18,000
2006	26,500		Books	7,000
2007	500	28,200	Salary	3,600
Sale of old newspapers		1,250	Rent	6,500
Govt. grant		12,000	Postage charges	300
Sale of old furniture (book value Rs5000)		3,700	Furniture (purchased)	10,500
Interest received on FD		450	Balance c/d
			Cash in Hand	3,000
			Cash at Bank	8,200
		65,150		65,150

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.

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

The correct option is B Income & Expenditure Account Income & expenditure account is similar to profit and loss account prepared for other organisations.

The correct option is B
Income & Expenditure Account

Income & expenditure account is similar to profit and loss account prepared for other organisations.