1. Sale of old materials must be shown on the credit side of (a) Cash Book (b) I

Question

1. Sale of old materials must be shown on the credit side of
(a) Cash Book
(b) Income & Expenditure Account
(c) Balance Sheet
(d). none of the above.

2. Receipts and Payment Account shows:
(a) Income & expenditure
(b) Cash receipts and payments
(c) Assets and liabilities.
(d) none of the above.

3. Income and expenditure account reveals:
(a) Cash in hand
(b) Surplus or deficiency
(c) Capital account.
(d) none of the above.

4. Donation received for a specific purpose:
(a) Should be credited to a separate account and shown on the liabilities side of the Balance Sheet,
(b) Should be credited to income and expenditure account,
(c) Should not be recorded at all.
(d) none of the above.

Explanation / Answer

1. (b) since it is income form other sources . thats why it will come on credit side of income and expenditure a.c

2. (b) receipt and payment shows all the cash receipts and corresponding cash payments made by the organisation during a given accounting year .

3. (b) -income and expenditure account workt out for the profit or loss incurred during in a given period . in other words ,Income and expenditure account reveals surplus or deficiency .

4.(a) - specific donation i.e donation which is earmarked for specific purpose is a liablity in a balance sheet of a "non-profit organisation"

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