TS Grewal Solution Class 12 Chapter 1 for free
                     TS Grewal Solution Class 12 Chapter 1 
Financial Statement of Not for Profit 
Organisations 2020 2021 
   
Accountancy 
Solutions for T.S. Grewal's Double Entry Book Keeping: 
Accounting for Not for Profit Organizations and Partnership Firms (Vol.1) 
Textbook for CBSE Class 12 
TS Grewal Solutions Class 12 Accountancy 
Chapter 1 Financial Statement of Not-for-Profit Organisations 
 
Very Short Answer Type Questions: 
 
 
Q1. Not-for-Profit Organisations have some distinguishing features from that of 
profit making organisations. State anyone them. 
 
Answer: 
Not-for-Profit Organisations are formed with a view to serve its members and 
public at large while profit organisations serve the objective of earning profits. 
  
 
Q2. What is the nature of Receipts and Payments Account? 
 
Answer: 
Receipts and Payments Account is a summary of cash (including bank) receipts 
and payments during an accounting period, receipts and payments being shown 
under appropriate heads of accounts. 
 
  
Q3. Is it correct to state that Receipts and Payments Account does not show non-
cash transaction? Why? 
 
 
 
Answer: 
Receipts and Payments Accounts is Prepared on cash basis, i.e. transactions and 
events which have been related to cash are shown in the account. This is the 
summary of the cash transaction as in the cash book. 
  
Q4. State the basis of accounting on which Receipts and Payments Account is 
prepared in case of Not-for-Profit Organisation. 
 
Answer: 
Cash Basis of Accounting on which Receipts and Payments Account is prepared in 
case of Not-for-Profit Organisation. 
 
  
Q5. What is the nature of Income and Expenditure Account? 
 
Answer: 
Income and Expenditure Account is like profit and loss Account of an enterprise. 
Since, Not for Profit Organisation are not established for the purpose or earning 
profit, they do not prepare Profit and loss Account. 
 
  
Q6. Distinguish between Income and Expenditure Account and Receipts and 
Payments Account on the basis of nature of items recorded therein. 
 
Answer: 
Income and Expenditure Account records items of revenue nature whereas 
Receipts and Payments Account records items of both capital and revenue nature. 
 
  
Q7. Distinguish between Income and Expenditure Account and Receipts and 
Payments Account on the basis of its nature. 
 
Answer: 
Income and Expenditure Account is a Nominal Account whereas Receipts and 
Payments Account is a Real Account. 
 
  
Q8. Where is general donation received shown in the final accounts of a Not-for-
Profit Organisation? 
 
Answer: 
Debit side of Receipts and Payment account, General donation received shown in 
the final accounts of a Not-for-Profit Organisation. 
 
 
 
 
Please click the link below to download TS Grewal Solution Class 12 Chapter 1 
Financial Statement of Not for Profit Organisations 2020 2021 
 
 
TS Grewal Solution Class 12 Chapter 1 Accounting for Partnership Firms Fundamentals (2018 
2019) 
TS Grewal Solution Class 12 Chapter 1 Accounting for Partnership Firms Fundamentals 2018 
2019 
TS Grewal Solution Class 12 Chapter 1 Financial Statement of a Company 2020 2021 
TS Grewal Solution Class 12 Chapter 1 Financial Statement of Not for Profit Organisations 2020 
2021 
TS Grewal Solution Class 12 Chapter 10 Company Accounts Redemption of Debentures 2020 
2021 
TS Grewal Solution Class 12 Chapter 2 Accounting for Partnership Firms Fundamentals (2019-
2020) 
 
 
 
 
 
 
   
Download free study materials for your Examinations at 
Studies today