Class 12 Accountancy - Chapter Accounting for Not-for-Profit Organisation NCERT Solutions | What are the features of Receipt and Pay
What are the features of Receipt and Payment Account?
1. It is a summary of the cash book. Its form is identical with that of a simple cash book (without discount and bank columns) with debit and credit sides. Receipts are recorded on the debit side while payments are entered on the credit side.
2. It shows the total amounts of all receipts and payments irrespective of the period to which they pertain . For example, in the Receipt and Payment Account for the year ending on March 31, 2016, we record the total subscriptions received during 2015–16 including the amounts related to the years 2014–2015 and 2016-2017. Similarly, taxes paid during 2015–16 even if they relate to the years 2014–15 and 2016–2017.
3. It includes all receipts and payments whether they are of capital nature or of revenue nature.
4. No distinction is made in receipts/payments made in cash or through banks. With the exception of the opening and closing balances, the total amount of each receipt and payment is shown in this account.
5. No non-cash items such as depreciation outstanding expenses accrued income, etc. are shown in this account.
6. It begins with opening balance of cash in hand and cash at bank (bank overdraft) and closes with the year end balance of cash in hand/cash at bank or bank overdraft. In fact, the closing balance in this account (difference between the total amount of receipts and payments) which is usually a debit balance reflects cash in hand and cash at bank unless there is a bank overdraft.
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Popular Questions of Class 12 Accountancy
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State the difference between dissolution of partnership and dissolution of partnership firm.
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Mohan and Shyam are partners in a firm. State whether the claim is valid if the partnership agreement is silent in the following matters:
(i) Mohan is an active partner. He wants a salary of Rs. 10,000 per year;
(ii) Shyam had advanced a loan to the firm. He claims interest @ 10% per annum;
(iii) Mohan has contributed Rs. 20,000 and Shyam Rs. 50,000 as capital. Mohan wants equal share in profits.
(iv) Shyam wants interest on capital to be credited @ 6% per annum. - Q:-
Identify various matters that need adjustments at the time of admission of a new partner.
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What are the different ways in which a partner can retire from the firm?
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State the accounting treatment at the time of dissolution of a firm for:
i. Unrecorded assets ii. Unrecorded liabilities - Q:-
State whether the following statements are true or false:
(i) Valid partnership can be formulated even without a written agreement between the partners;
(ii) Each partner carrying on the business is the principal as well as the agent for all the other partners;
(iii) Maximum number of partners can be 50;
(iv) Methods of settlement of dispute among the partners can’t be part of the partnership deed;
(v) If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the partner;
(vi) Interest on partner’s loan is to be given @ 12% p.a. if the deed is silent about the rate. - Q:-
Why it is necessary to ascertain new profit sharing ratio even for old partners when a new partner is admitted?
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Write the various matters that need adjustments at the time of retirement of partner/partners.
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On dissolution, how will you deal with partner’s loan if it appears on the
(a) assets side of the balance sheet, (b) liabilities side of balance sheet. - Q:-
What is sacrificing ratio? Why is it calculated?
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Why it is considered desirable to make the partnership agreement in writing.
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State the accounting treatment at the time of dissolution of a firm for:
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Define Partnership Deed.
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Explain why it is considered better to make a partnership agreement in writing.
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Give two circumstances under which the fixed capitals of partners may change.
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Identify various matters that need adjustments at the time of admission of a new partner.
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What is meant by partnership? Explain its chief characteristics? Explain.
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Reproduce the format of Realisation Account.
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Illustrate how interest on drawings will be calculated under various situations.
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What are the different ways in which a partner can retire from the firm?
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