Accountancy Part AAccounts for Non Profit Organsiation

Select the item that does not appear in the Receipt and Payment accou…

Select the item that does not appear in the Receipt and Payment account of a Not-for-Profit Organisation.

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → Loss on sale of furniture

The Receipt and Payment Account is a summary of the cash book. It shows every actual receipt and payment, capital or revenue, but no non-cash item.

Option (1) Sale of machinery for cash — It appears. The cash received is a capital receipt on the receipts side.

Option (2) Subscription received — It appears. The total cash received from members is on the receipts side.

Option (3) Loss on sale of furniture — Correct. A loss involves no cash; only the sale proceeds appear, and the loss goes to the Income and Expenditure Account.

Option (4) Payment to creditors — It appears. Cash paid out is on the payments side.

Note: This question is from the pre-rationalised NCERT book. 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):
Salient Features – “… 3. It includes all receipts and payments whether they are of capital nature or of revenue nature. 4. No distinction is made in receipts/payments made in cash or through bank. With the exception of the opening and closing balances, the total amount of each receipt and payment is shown in this account. 5. No non-cash items such as depreciation outstanding expenses accrued income, etc. are shown in this account.”