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.
