Answer in one sentence only.
1) What do you mean by ‘Not for Profit’ Concern?
Ans: A concern or organisation which is formed and established to serve its members and society or general public by undertaking various activities without any profit motive is called a ‘Not for Profit’ concern.
2) Which organisations prepare Income and Expenditure Account?
Ans: ‘Not for profit’ concern prepares Income and Expenditure Account.
3) What is Receipts and Payments Account?
Ans: An account which is prepared by a ‘Not for Profit Concern’ to record a summary of all types of cash receipts and cash payments inclusive of bank transactions is called receipts and Payments Account.
4) Why Income and Expenditure Account is prepared?
Ans: Income and Expenditure Account is prepared to ascertain, whether the concern has sufficient incomes to meet its expenses, or not.
5) What is Capital Fund?
Ans: Excess of Assets over Liabilities is known as Capital Fund which also consists of contributions, subscriptions, entrance fees, surplus income, etc.
6) What is a Subscription?
Ans: Subscription is the periodical payment made by the members to the ‘Not for Profit’ concern for maintaining his membership.
7) What is ‘Legacy ?
Ans: Any asset, property or amount of cash which ‘Not for Profit’ concern receives as per the provisions made in the will of the donor after his death is called Legacy.
8) What is Surplus?
Ans: Excess of income over expenditure shown by Income and Expenditure Account represents Surplus for the financial year.
9) What do you mean by Non Recurring Expenses ?
Ans: Non recurring Expenses are the expenses which is made for acquisition of fixed asset which gives benefits for a long period.
10) To which account ‘Surplus’ or ‘Deficit’ is transferred?
Ans: ‘Surplus’ or ‘Deficit’ is transferred to Balance Sheet by adding it or subtracting it from Capital Fund.