12th Accountancy - Book Back Answers - Unit 2 - English Medium Guides ~ Kalvi Tips

12th - Accountancy - Book Back Answers - Unit 2 - English Medium

Tamil Nadu Board 12th Standard Accountancy - Unit 2: Book Back Answers and Solutions

This post covers the book back answers and solutions for Unit 2 – from the Tamil Nadu State Board 12th Standard Accountancy textbook. These detailed answers have been carefully prepared by our expert teachers at KalviTips.com.

We have explained each answer in a simple, easy-to-understand format, highlighting important points step by step under the relevant subtopics. Students are advised to read and memorize these subtopics thoroughly. Once you understand the main concepts, you’ll be able to connect other related points with real-life examples and confidently present them in your tests and exams.

By going through this material, you’ll gain a strong understanding of Unit 2 along with the corresponding book back questions and answers (PDF format).

Question Types Covered:

1 Mark Questions: Choose the correct answer,
2 Mark Questions: Very Short Answer Questions
3, 4, and 5 Mark Questions: Short Answer Questions, Excercises

All answers are presented in a clear and student-friendly manner, focusing on key points to help you score full marks.

All the best, Class 12th students! Prepare well and aim for top scores. Thank you!

Topic: Unit 2 :Accounts Of Not For Profit Organisation

I. Choose the correct Answer

1. Receipts and payments account is a …………….
(a) Nominal A/c
(b) Real A/c
(c) Personal A/c
(d) Representative personal account
Answer Key:
(b) Real A/c

2. Receipts and payments account records receipts and payments of …………….
(a) Revenue nature only
(b) Capital nature only
(c) Both revenue and capital nature
(d) None of the above
Answer Key:
(c) Both revenue and capital nature

3. Balance of receipts and payments account indicates the …………….
(a) Loss incurred during the period
(b) Excess of income over expenditure of the period
(c) Total cash payments during the period
(d) Cash and bank balance as on the date
Answer Key:
(d) Cash and bank balance as on the date

4. Income and expenditure account is a …………….
(a) Nominal A/c
(b) Real A/c
(c) Personal A/c
(d) Representative personal account
Answer Key:
(a) Nominal A/c

5. Income and Expenditure Account is prepared to find out …………….
(a) Profit or loss
(b) Cash and bank balance
(c) Surplus or deficit
(d) Financial position
Answer Key:
(c) Surplus or deficit

6. Which of the following should not be recorded in the income and expenditure account?

(a) Sale of old news papers
(b) Loss on sale of asset
(c) Honorarium paid to the secretary
(d) Sale proceeds of furniture
Answer Key:
(d) Sale proceeds of furniture

7. Subscription due but not received for the current year is …………….
(a) An asset
(b) A liability
(c) An expense
(d) An item to be ignored
Answer Key:
(a) An asset

8. Legacy is a …………….
(a) Revenue expenditure
(b) Capital expenditure
(c) Revenue receipt
(d) Capital receipt
Answer Key::
(d) Capital receipt

9. Donations received for a specific purpose is …………….
(a) Revenue receipt
(b) Capital receipt
(c) Revenue expenditure
(d) Capital expenditure
Answer Key:
(b) Capital receipt

10. There are 500 members in a club each paying RS 100 as annual subscription. Subscription due but not received for the current year is RS 200; Subscription received in advance is ? 300. Find out the amount of subscription to be shown in the income and expenditure account,
(a) RS 50, 000
(b) RS 50, 200
(c) RS 49, 900
(d) RS 49, 800
Answer Key:
(a) RS 50,000

II.Very short answer questions

1. State the meaning of not–for–profit organisation.

Some organisations are established for the purpose of rendering services to the public without any profit motive. These organisations are called not–for–profit organisation.
Ex- sports clubs, hospitals, libraries

2. What is receipts and payments account?

Receipts and Payments account is a summary of cash and bank transactions of not–for– profit organisations prepared at the end of each financial year. It is a real account in nature.

3. What is legacy?

A gift made to a not–for–profit organisation by a will, is called legacy. It is a capital receipt.

4. Write a short note on life membership fees.

Amount received towards life membership fee from members is a capital receipt as it is non-recurring in nature.

5. Give four examples for capital receipts of not–for–profit organisation.

i)Life membership fees

ii) Legacies

iii) Sale of fixed assets

iv) Prize fund

6. Give four examples for revenue receipts of not–for–profit organisation.

i) Subscription

ii) Sale of (old) sports materials

iii) Sale of (old) newspapers

iv)Interest on investment

III. Short answer questions

1. What is income and expenditure account?

Income and expenditure account is a summary of income and expenditure of a not–for– profit organisation prepared at the end of an accounting year. It is prepared to find out the surplus or deficit pertaining to a particular year. It is a nominal account.

2. State the differences between Receipts and Payments Account and Income and Expenditure Account.

Basis	Receipts and payments	Income and expenditure
1. Purpose	It is prepared to know the cash receipts and cash payments.	It is prepared to know the surplus and deficit during the current period.
2. Nature of account	It is a real account	It is a nominal account
3. Basis of accounting	It is based on cash system of accounting. Non-cash items are not recorded.	It is based on accrual system of accounting. Non-cash items are recorded

3. How annual subscription is dealt with in the final accounts of not–for–profit organisation?

Dr Income and Expenditure Account for the year ended… Cr

Expenditure	Rs	Income	Rs.	Rs.
		By subscription Less: subscription for the previous year Less: subscription for the subsequent year Add: Outstanding subscription for the current year Add: Received in advance during the previous year for the current year	xxx xxx	xxx
			xxx xxx
			xxx xxx
			xxx xxx

4. How the following items are dealt with in the final accounts of not–for–profit organisation?

a) Sale of sports materials

Consumable items such as sports materials, stationery, medicines, etc., consumed during the year will appear on the debit side of income and expenditure account.
Closing stock will appear on the assets side of the balance sheet as at the end of the year.

b) Life membership fees

Amount received towards life membership fee from members is a capital receipt as it is non- recurring in nature.

c) Tournament fund

It is recurring in nature. (ii) It is revenue receipt. (iii) It is shown liabilities side of balance sheet.

IV. Excercises

Question 1.
From the information given below, prepare Receipts and Payments account of Kurunji Sports Club for the year ended 31st December, 2018.

Answer Key:

Kurinji Sports Club Account for the year ended 31st Dec 2018
Receipts and Payments

Question 2.
From the information given below, prepare Receipts and Payments account of Coimbatore Cricket Club for the year ending 31st March, 2019.

Answer Key:
Coimbatore Cricket Club Receipts and Payments Account
for the year ending 31.03.19

Question 3.
From the information given below, prepare Receipts and Payments account of Madurai Mother Theresa Mahalir Mandram for the year ended 31st December, 2018.

Answer Key:
Madurai Mother Theresa Mahalir Mandram Receipts and Payments Account for the year ending 31.12.18

Question 4.
Mayiladuthurai Recreation Club gives you the following details. Prepare Receipts and Payments account for the year ended 31st March, 2019.

Answer Key:
Mayiladuthurai Recreation Club Receipts and Payments Account for the year ending 31.3.19

Question 5.
From the following information, prepare Receipts and Payments account of Cuddalore Kabaddi Association for the year ended 31st March, 2019.

Cuddalore Kabadi Association Receipts and Payments Account for the year ending 31.03.19
Answer Key:

Question 6.
From the following receipts and payments account of Tenkasi Thiruvalluvar Manram, prepare income and expenditure account for the year ended 31st March, 2019.

Answer Key:
Tenkasi Thiruvalluvar Manram Income and Expenditure Account for the year ended 31.03.19

Question 7.
From the following receipts and payments account, prepare income and expenditure account of Kumbakonam Basket Ball Association for the year ended 31st March, 2018.
Answer Key:
Kumbakonam Basket Ball Association Income & Expenditure Account for the year ended 31.03.19

Question 8.
From the following receipts and payments account and the additional information given below, calculate the amount of subscription to be shown in Income and expenditure account for the year ending 31st December, 2018.
Answer Key:
Income and Expenditure Account for the year ended 31.12.18

Question 9.
How the following items will appear in the final accounts of a club for the year ending 31st March 2019?
Receipts and Payments Account for the year ended 31st March, 2019

Answer Key:
There are 200 members in the club each paying an annual subscription of RS 400 per annum. Subscription still outstanding for the year 2017 – 2018 is RS 2,000.
Income & Expenditure Account for the year ended 31.03.2019

Balance Sheet as on 31.03.19

Question 10.
How will the following items appear in the final accounts of a club for the year ending 31st March 2017? Received subscription of RS 40,000 during the year 2016 – 17. This includes subscription of RS 5,000 for 2015 – 16 and RS 3,000 for the year 2017 – 18. Subscription of RS 1,000 is still outstanding for the year 2016 – 17.

Answer Key:
Income & Expenditure Account for the year ended 31.03.19

Balance Sheet as on 31.03.1

Question 11.
Compute income from subscription for the year 2018 from the following particulars relating to a club.

Answer Key:

Subscription received during the year 2018: ₹ 45,000. Income & Expenditure Account for the year ended 31.03.2019

Question 12.
From the following particulars, show how the item ‘subscription’ will appear in the Income and Expenditure Account for the year ended 31 – 12 – 2018?
Subscription received in 2018 is RS 50,000 which includes RS 5,000 for 2017 and RS 7,000 for 2019. Subscription outstanding for the year 2018 is RS 6,000. Subscription of RS 4,000 was received in advance for 2018 in the year 2017.

Answer Key:
Income and Expenditure Account for the year ended 31.12.2018

Question 13.
How the following items appear in the final accounts of Thoothukudi Young Pioneers Association?
There are one hundred members in the association each paying RS 25 as annual subscription. By the end of the year 10 members had not paid their subscription but four members had paid for the next year in advance.
Income & Expenditure Account for the year ended

Answer Key:

Balance Sheet as on …………..

Question 14.
How will the following appear in the final accounts of Marthandam Women Cultural Association?

Stock of sports materials on 1.4.2018 16,000

Sports materials purchased during the year 84,000

Stock of sports materials on 31.3.2019 10,000

Answer Key:

Income and Expenditure Account for the year ended 31.03.19

Balance Sheet as on 31.03.19

Question 15.
How will the following appear in the final accounts of Vedaranyam Sports club?

Opening stock of bats and balls 3,000

Purchase of bats and balls during the year 17,000

Sale of old bats and balls 2,000

Closing stock of bats and balls 4,000

Answer Key:

Income & Expenditure Account for the year ended

Balance Sheet as on …………..

Question 16.
Show how the following items appear in the income and expenditure account of Sirkazhi Singers Association?

Stock of stationery on 1.4.2018 2,600

Purchase of stationery during the year 6,500

Stock of stationery on 31.3.2019 2,200

Answer Key:
Income and Expenditure Account for the year ended 31.03.18

Question 17.
Chennai tennis club had Match fund showing credit balance of RS 24,000 on 1st April, 2018. Receipt to the fund during the year was RS 26,000. Match expenses incurred during the year was RS 33,000. How these items will appear in the final accounts of the club for the year ended 31st March, 2019?
Balance Sheet as on 31.03.2019
Answer Key:
Income and Expenditure Account for the year ended 31.03.18

Question 18.
How will the following appear in the final accounts of Karaikudi sports club for the year ending 31stMarch, 2019?
Answer Key:
Balance Sheet as on 31.03.19

Question 19.
Compute capital fund of Salem Sports Club as on 1.4.2019.

Answer Key:
Balance Sheet as on 01.04.2019

Question 20.
From the following Receipts and Payments account and from the information given below of Ramanathapuram Sports Club, prepare Income and Expenditure account for the year ended 31st December, 2018 and the balance sheet as on that date.
Receipts and Payments Account for the year ended 31st December, 2018

Additional information:
1. Capital fund as on 1st January 2018 RS 30,000.
2. Opening stock of sports material RS 3,000 and closing stock of sports material RS 5,000.

Answer Key:
Income and Expenditure Account for the year ended 31.12.18

Balance Sheet as on 31.12.18

Question 21.
From the following Receipts and Payments account of Yercaud Youth Association, prepare Income and expenditure account for the year ended 31st March, 2019 and the balance sheet as on that date.
Receipts and Payments Account for the year ended 31st March, 2019

Additional information:
1. Opening capital fund RS 20,000.
2. Stock of books on 1.4.2018 RS 9,200.
3. Subscription due but not received RS 1,700.
4. Stock of stationery on 1.4.2018 RS 1,200 and stock of stationery on 31.3.2019, RS 2,000

Answer Key:

Income and Expenditure Account for the year ended 31.03.19

Balance Sheet as on 31.03.2019

Question 22.
Following is the Receipts and Payments account of Neyveli Science Club for the year ended 31st December, 2018.
Receipts and Payments Account for the year ended 31st December, 2018

Additional information:
1. Opening capital fund RS 6,400
2. Subscription includes RS 600 for the year 2019
3. Science equipment as on 1.1.2018 RS 5,000
4. Surplus on account of exhibition should be kept in reserve for new auditorium.
Prepare income and expenditure account for the year ended 31st December, 2018 and the balance sheet as on that date.

Answer Key:
Income and Expenditure Account for the year ended 31.12.18

Balance Sheet as on 31.12.2018

Question 23.
From the following Receipts and Payments account of Sivakasi Pensioner’s Recreation Club, prepare income and expenditure account for the year ended 31st March, 2018 and the balance sheet as on that date.
Receipts and Payments Account for the year ended 31st March, 2018

Additional information:
1. The club had 300 members each paying RS 100 as annual subscription.
2. The club had furniture RS 10,000 on 1.4.2017.
3. The subscription still due but not received for the year 2016 – 2017 is RS 1,000.
Income and Expenditure Account for the year ended 31.03.18
Opening Balance Sheet as on 1.1.18

Balance Sheet as on 31.12.2019

Question 24.
Following is the Receipts and payments account of Virudhunagar Volleyball Association for the year ended 31st December, 2018.
Receipts and Payments Account for the year ended 31st December, 2018

Answer Key:
Additional information:
1.    On 1.1.2018, the association owned investments RS 10,000, premises and grounds RS 40,000, stock of bats and balls RS 5,000.
2.    Subscription RS 5,000 related to 2017 is still due.
3.    Subscription due for the year 2018, RS 6,000.
Prepare income and expenditure account for the year ended 31st December, 2018 and the balance sheet as on that date.

Answer Key:
Income and Expenditure Account for the year ended 31.12.18

Opening Balance Sheet as on 1.1.18

Balance Sheet as on 31.12.2109