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What is the basis for preparing an Income and Expenditure Account in the case of Not-for-Profit Organizations.
The Income and Expenditure Account in the case of not for profit organisations is prepared on accrual basis with the help of Receipts and Payments Account.
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Distinguish between Fixed and Fluctuating Capital Accounts.
In fixed capital account method, two separate accounts are maintained for each partner capital account and current account. In fluctuating capital accounts method, each partner maintains only one account, i.e. capital account.
State the two main rights that a newly admitted partner acquires in the firm.
The two main rights a newly admitted partner acquires in a firm are:
i. Right to share the assets of the partnership firm; and
ii. Right to share the profits of the partnership firm
How does the market situation affect the value of goodwill of a firm?
The monopoly condition of a market and limited competition helps a firm to earn huge profit which will ultimately lead to higher value of goodwill.
From the following information of a club, show the amounts of match expenses and match fund in the Financial Statements of the Club for the years ended on 31st March, 2009 and 31st March, 2010.
|
Details Amount Rs. |
|
Match expenses (paid during the year 2009 - 2010) 30,000 Match Fund (as on 31-3-2009) 17,000 Donation for Match Fund (Received during the year 2009-2010 9,000 Proceeds from the sale of match tickets (Received during the year 2009-2010) 3,000 |
Balance sheet as on 31-3-2010
|
Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
|
Match fund as on 31-3-2009 Add Donation received during the year 09-10 Proceeds from sale of match ticket during 09-10
Less Match expenses during the period
Transfer to income and expenditure account. |
17000
9000
3000
29,000
|
|
|
|
30,000
|
|||
|
(1000) |
|||
|
|
Income and Expenditure a/c for the year ended 31-3-2010
Dr Cr
|
Expenditure |
Amount (Rs) |
Income |
Amount (Rs) |
|
To Match Expenses |
1,000 |
|
|
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