Question :
A club has the policy of capitalising 25% of its entrance fees. The amount of entrance fees capitalised during the year is Rs.50,000. The amount of entrance fees to be shown on credit side of Income and Expenditure A/c will be:
Option 1:
Rs.2,00,000
Option 2: Rs.2,50,000
Option 3: Rs.1,50,000
Option 4: Rs.1,00,000
Correct Answer: Rs.1,50,000
Solution : Entrance capitalised = Rs.50,000. % of entrance fees capitalised = 25%. Total entrance fees = Rs.50,000 X 100/25 = Rs.2,00,000. % of entrance fees is to be credited to Income and Expenditure Account = 100% - 25% = 75%. Entrance fees to be credited to Income and Expenditure Account = Rs.2,00,000 X 75% = Rs.1,50,000. Hence, the correct option is 3.
A club received Entrance fees of Rs.22,000. The club capitalises 15% of the entrance fee. The amount to be credited to Income and Expenditure A/c will be:
Rs.14,700
Option 2:
Rs.18,700
Option 3:
Rs.3,300
Option 4: None of these
General donations are treated as:
Revenue receipt
Capital receipt
Option 3: Revenue expenditure
Option 4: Capital expenditure
Receipts and Payments Account does not include which of the following?
Non-cash items such as depreciation
Outstanding expenses
Accrued income
Option 4: All of these
Any amount received as per the will of a deceased person specifying its use is a:
Option 3: Both 1 and 2
Which of the following is not a feature of a not-for profit organisation?
Service motive
Separate entity
Unlimited liability
Option 4:
Managed by elected members
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