200 members each paying an annual subscription of `10. The amount to be credited to income and expenditure account will be a) `11
800 b) ` 11
300 c) `12
000 d) None of the above13. Any income arising from special fund will be credited to a) Special fund in the balance sheet b) Income and expenditure account c) General fund in the Balance Sheet d) None of the above14. ncome and expenditure account shows subscriptions at `10
000. Subscriptions accrued in the beginning of the year and at the end of the year were `1
000 and `1
500 respectively. The figure of subscriptions received appearing in receipts and payments account will be a) `9
500 b) ` 11
000 c) `10
000 d) None of the above15. Which of the following item(s) is (are) shown in the income and expenditure account a) Only items of capital nature b) Only items of revenue nature which are received during the period of accounts c) Only items of revenue nature pertaining to the period of accounts d) Bothe the items of capital and revenue natureAns: 1.a 2.a 3.a 4.c 5.b 6.b 7.a 8.a 9.b 10.a 11.c 12.c 13.a 14.a 15.cFill in the blanks:1. In a receipts and payments account the payments are recorded on the ___side (Credit)2. The closing debit balance in the receipts and payments account indicates the ___balance at the end of the year (Cash)3. The income and expenditure account is prepared on the basis of ___system of accounting (Mercantile)4. A debit balance in the income and expenditure account denotes excess of ___ (Expenditure over Income)5. Income and expenditure matches all ___receipts against Revenue payments pertaining the relevant accounting year.( Revenue)6. Any amount received towards Endowment fund is a ___Receipt (Capital)7. Interest received on special fund investments will be added to ___fund in the balance sheet (Special)8. Subscriptions received in advance will figure in the ___(Balance Sheet)9. Any revenue expenditure relating to special fund must be deducted from ___ (Special Fund)10. Out of `5
0
000 collection for the building `3
0
000 is invested and the balance spent on building. Income from investments `20
000. The balance to be shown in the building fund ___(`5
20
000)True or False:1. Receipts and payments account is nothing but a consolidated summary of the Cash Book. (TRUE)2. Receipts and payments account is a real account. (TRUE)3. Income and expenditure account is a real account. (FALSE)4. Entrance fees unless otherwise stated is to be taken as a capital receipt. (FALSE)5. Donations unless otherwise stated is to be taken as a capital receipt. (TRUE)
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