Match List – I with List – II. List - I List - II (A) Not for Profit… | Accountancy Part A CUET question

Match List – I with List – II.

List - I	List - II
(A) Not for Profit Organisation	(I) Collateral security
(B) Part of issued capital which can be called only in the event of winding up	(II) Operating Activity
(C) Issue of Debentures	(III) Reserve Capital
(D) Cash flow statement	(IV) Income and Expenditure A/c

Choose the correct answer from the options given below :

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → (A)-(IV), (B)-(III), (C)-(I), (D)-(II)

(A) Not for Profit Organisation — this matches (IV) Income and Expenditure A/c. A not-for-profit organisation prepares an Income and Expenditure Account in place of a Profit and Loss Account.

(B) Part of issued capital which can be called only in the event of winding up — this matches (III) Reserve Capital. The company resolves to keep this uncalled amount for the creditors on winding up.

(C) Issue of Debentures — this matches (I) Collateral security. A company may issue its own debentures to a lender as additional security for a loan.

(D) Cash flow statement — this matches (II) Operating Activity. A cash flow statement classifies cash flows into operating, investing and financing activities.

Note: This question is from the pre-rationalised NCERT book for item (A) (Not for Profit Organisation - Income and Expenditure A/c). The topic is not there in the latest NCERT book (2026-27), but it is still in the CUET 2026 syllabus, so do not skip it.

NCERT (Pre-rationalised edition):
Accounting Records of Not-for-Profit Organisations – “… Income and Expenditure Account is akin to Profit and Loss Account. The Not-for-Profit Organisations usually prepare the Income and Expenditure Account and a Balance Sheet with the help of Receipt and Payment Account.”

NCERT (2026-27 edition):
Reserve Capital – “… A company may reserve a portion of its uncalled capital to be called only in the event of winding up of the company. Such uncalled amount is called ‘Reserve Capital’ of the company. It is available only for the creditors on winding up of the company.”

NCERT (2026-27 edition):
Test your Understanding – I

Extract from the NCERT textbook

NCERT (2026-27 edition):
Answers to Test your Understanding

Extract from the NCERT textbook

NCERT (2026-27 edition):
Issue of Debentures as a Collateral Security – “… In such situation, the company may issue its own debentures to the lenders in addition to some other assets already pledged. Such an issue of debentures is known as ‘Debentures issued as Collateral Security’.”

NCERT (2026-27 edition):
Classification of Activities for the Preparation of Cash Flow Statement – “… As per AS-3, these activities are to be classified into three categories: (1) operating, (2) investing, and (3) financing activities so as to show separately the cash flows generated (or used) by (in) these activities.”

Match List – I with List – II.

List - I	List - II
(A) Not for Profit Organisation	(I) Collateral security
(B) Part of issued capital which can be called only in the event of winding up	(II) Operating Activity
(C) Issue of Debentures	(III) Reserve Capital
(D) Cash flow statement	(IV) Income and Expenditure A/c

Choose the correct answer from the options given below :

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → (A)-(IV), (B)-(III), (C)-(I), (D)-(II)

(C) Issue of Debentures — this matches (I) Collateral security. A company may issue its own debentures to a lender as additional security for a loan.

(D) Cash flow statement — this matches (II) Operating Activity. A cash flow statement classifies cash flows into operating, investing and financing activities.

NCERT (2026-27 edition):
Test your Understanding – I

Extract from the NCERT textbook

NCERT (2026-27 edition):
Answers to Test your Understanding

Extract from the NCERT textbook