Question : Receipts and Payments Account is a summary of:

Option 1: Income and expenses

Option 2: Debit and credit balances of ledger accounts

Option 3: Cash receipts and payments

Option 4: Balances of assets and liabilities

Question : The balance of partner's Capital Accounts, in case of fixed capital method, are:

Option 1: Always Debit

Option 2: Always Credit

Option 3: Either debit/credit

Option 4: Neither debit nor credit

Question : The Partner's Current Account has:

Option 1: a debit balance

Option 2: a credit balance

Option 3: either a debit or credit balance

Option 4: a nil balance

Question :

The amount received on the sale of furniture will be shown on:

Option 1: Credit side of Income and Expenditure

Option 2: Debit side of Income and Expenditure Account

Option 3: Debit side of Receipts and Payments Account

Option 4: Credit side of Receipts and Payments Account

Question :

Not-for-profit organisation prepare Receipts and Payments Account because:

Option 1:

It is a summary of cash receipts and payments

Option 2:

It helps in the preparation of Income and Expenditure A/c and Balance Sheet

Option 3:

It is to be submitted to the Registrar of societies along with Income and Expenditure A/c and Balance Sheet

Option 4: All of these

Question :

How would the following items be shown in the case of a not-for- profit organisation?

Receipts from Charity show = Rs.8,000
Expenses on Charity show = Rs.5,000

Option 1:

Net Charity fund of Rs.3,000 will be shown on liabilities side of the Balance Sheet

Option 2:

Receipts and expenses will be shown on credit and debit side respectively of Income and Expenditure A/c

Option 3:

Rs.3,000 will be added to capital fund as profit from charity show

Option 4: None of these