CUET Preparation Today
| Read the Paragraph given below carefully and answer the following question. (Q No 4) Dr. Ashima Mittal is a qualified M.D. doctor got voluntary retirement at the age of 50 years from a renowned hospital. She was residing in a flat of a wide apartment which is surrounded by a slum which is inhabited by economically weaker strata of the society. As the people in that area were not aware about importance of health care, a widespread ailment had been persistently prevailing. Ashima met with some of the well-off people of apartment and decided to open a dispensary named as `Mohalla Clinic’ to provide them cost free medical assistance and make them aware about hygienic living, physical fitness, and economic balance diet. Many of the apartment members agreed to it. She approached health department of the town with her proposal which was accepted and an initial one time grant of ₹.2,00,000 was sanctioned immediately for purchase of medical equipment and test kits for pathological tests. 10 members of the apartment contributed ₹ 20,000 each as lifetime subscription to the clinic. Ashima decided to charge ₹10 as one time registration fee from patients. Apart from above Ashima made following transactions for first year: Sl No Particulars Amount (in Rs) 1 Purchased Equipment 1,20,000 2 Purchased Medicines 95,000 3 Purchased Furniture 10,000 4 Rent Paid 12,000 5 Fee Received for medical Tests 45,000 6 Honorarium paid to Yoga Teacher 35,000 7 Honorarium paid to physiotherapist and sports teacher 38,000 Ashima informed that during the first year 10,500 patients were registered for treatment and for other services. |
| Which of the following accounts are prepared by Dr Ashima? a. Income and Expenditure account b. Receipt and Payment account c. Trading and Profit and loss account d. Profit and Loss Appropriation account e. Balance Sheet |
a, b and e only c and e only c ,d and e only a and e only |
| a, b and e only |
| The Not-for-Profit Organisations are required to prepare financial statements at the end of the each accounting period. These organisations are non-profit making entities and they are not required to make Trading and Profit & Loss Account but it is necessary to know that the income during the year was sufficient to meet the expenses or not. They have to provide the necessary financial information to members, donors, and contributors and also to the Registrar of Societies. The Receipt and Payment Account is the summary of cash and bank transactions which helps in the preparation of Income and Expenditure Account and the Balance Sheet. It is a legal requirement as the Receipts and Payments Account has also to be submitted to the Registrar of Societies along with the Income and Expenditure Account, and the Balance Sheet. |
