Match List - I with List - II
| List - I | List - II | ||
|---|---|---|---|
| (a) | Honorarium | (i) | Asset side of balance sheet |
| (b) | Life Membership Fees | (ii) | Credited to Income and Expenditure Account |
| (c) | General Donations | (iii) | Debited to Income and Expenditure Account |
| (d) | Outstanding subscription | (iv) | Credited to Capital Fund |
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (a) - (iii), (b) - (iv), (c) - (ii), (d) - (i)
In a not-for-profit organisation, revenue items go to the Income and Expenditure Account, capital receipts go to the Capital Fund, and amounts still to be received are assets.
| List-I | List-II | Reason |
|---|---|---|
| (a) Honorarium | (iii) Debited to Income and Expenditure Account | It is a payment to a person who is not a regular employee, such as an artist. It is a revenue expense. |
| (b) Life Membership Fees | (iv) Credited to Capital Fund | It is a lump sum paid once in place of yearly subscriptions, so it is a capital receipt. |
| (c) General Donations | (ii) Credited to Income and Expenditure Account | A donation with no special purpose is a regular source of income, a revenue receipt. |
| (d) Outstanding subscription | (i) Asset side of balance sheet | It is subscription due from members but not yet received, so it is an amount receivable. |
Note: This question is from the pre-rationalised NCERT book. The topic is not there in the latest NCERT book (2026-27), and it is also out of the CUET 2026 syllabus.
NCERT (Pre-rationalised edition): Some Peculiar Items – “… Life Membership Fees: Some members prefer to pay lump sum amount as life membership fee instead of paying periodic subscription. Such amount is treated as capital receipt and credited directly to the capital/general fund.” Some Peculiar Items – “… (ii) General Donations: Such donations are to be utilised to promote the general purpose of the organisation. These are treated as revenue receipts as it is a regular source of income hence, it is taken to the income side of the Income and Expenditure Account of the current year.” Some Peculiar Items
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