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Home Questions HG7B9N6436
Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounts for Non Profit Organsiation

Question:

Match the following lists.

List 1

List 2            

A) Building fund                       

I) Asset side side of B/S     

B) Govt grants of ₹10,000

II) Expenses side of I & E A/c

C) Subscription not received for the current year of ₹5,000

III) Income side of I & E A/c

D) Honorarium of ₹8,000

IV) Liability side of B/S

 Choose the correct answer from the options given below.

Options:

A-I, B-II, C-III, D-IV

A-IV, B-II, C-III, D-I

A-IV, B-III, C-II, D-I

A-IV, B-III, C-I, D-II

Correct Answer:

A-IV, B-III, C-I, D-II

Explanation:

The correct answer is option 4- A-IV, B-III, C-I, D-II.

List 1

List 2            

A) Building fund                       

IV) Liability side of B/S

B) Govt grants of ₹10,000

III) Income side of I & E A/c

C) Subscription not received for the current year of ₹5,000

I) Asset side side of B/S    

D) Honorarium of ₹8,000

II) Expenses side of I & E A/c

 

*Building fund- Besides the Capital or General Fund, there may be other funds created for specific purposes or to meet the requirements of the contributors/donors such as building fund, sports fund, etc. Such funds are shown separately in the liabilities side of the balance sheet.

* Govt grants of ₹10,000- Government Grant: Schools, colleges, public hospitals, etc. depend upon government grant for their activities. The recurring grants in the form of maintenance grant is treated as revenue receipt (i.e. income of the current year) and credited (income side) to Income and Expenditure account.

* Subscription not received for the current year of ₹5,000- Subscription for the current year is accrued income so it is to be shown on the asset side of the balance sheet.

* Honorarium of ₹8,000- Honorarium is the amount paid to the person who is not a regular employee of the institution. Payment to an artist for performing at the club is an example of an honorarium. This payment of honorarium is shown on the expenditure (debit) side of the Income and Expenditure Account.

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