21. Which account ‘Not for Profit’ concerns prepares instead of Cash account?
Ans. ‘Not for profit’ concerns prepare ‘Receipts and Payments’ Account instead of Cash account.
22. What do you mean by ‘Not for Profit’ concern?
Ans. A concern or an organisation which is formed and established to serve society or general public by undertaking various activities without any profit motive is called a ‘not for profit’ concerns.
23. State the meaning of Capital Receipts.
Ans. Capital Receipts are those receipts which are non – recurring in nature and not forming a part of regular flow of income of a concern. E.g. specific donation received for construction of a building.
24. Write the meaning of Revenue Receipts.
Ans. Revenue Receipts are those receipts which are recurring in nature and such receipts give a regular flow of income of a concern, e.g. subscriptions received from members.
25. State the meaning of Revenue expenditure.
Ans. An expenditure which is incurred for carrying day – to – day business activities and maintaining fixed assets in working condition is called revenuer expenditure.
26. What do you mean by Capital expenditure?
Ans. An expenditure which is non – recurring in nature and incurred to purchase new fixed assets to increase earning capacity, efficiency and working life of the existing fixed assets and to achieve economy of operation of an existing fixed assets is called capital expenditure.
27. 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.
28. What do you mean by capital fund?
Ans. Capital fund consists of contributions, entrance fees, surplus income, legacies and donations specifically received for capital fund.
29. State the meaning of Entrance Fees.
Ans. Specific amount received from the member only once usually at the time of his entry into ‘Not for profit’ concern is called entrance fees.
30. What do mean by ‘Special donation’?
Ans. Donations which are given for a specific purpose like donation for building fund are called as special donations and such donations are to be utilised for the same purpose for which they have been collected.