TS Grewal Class 12 Accountancy Solutions Vol 1 Chapter 1- Company Accounts Financial Statements of Not-for-Profit Organisations 2021

TS Grewal Class 12 Accountancy Solutions Vol 1 Chapter 1 pdf will be provided in this article. The students need to have a piece of detailed knowledge about the topic. This article will provide all the important topics in detail which are covered in the chapter along with TS Grewal Class 12 Accountancy Solutions Vol 1 Chapter 1.  

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TS Grewal Class 12 Accountancy Solutions Vol 1 Chapter 1

TS Grewal Class 12 Accountancy Solutions Vol 1 Chapter 1 Detailed Topic  

This chapter includes:-  

Characteristics of features of Not For Profit Organisation: 

• Entity: has a separate legal entity promoted by individuals  
• Purpose: is to further cultural, educational, religious, professional wrestling objectives and rendering service to people at large.  
• Ownership: it is set up as a charitable society or trust.  
• Financial statements: it prepares its financial statement every year which includes receipts and payments account, income, and expenditure, and balance sheet.  
• Funds: required for operations given by its members and donors as entrance fee, membership fee, subscription, and donations.  

Receipts and Payments Account: it is a summary of cash and bank transactions for a given period. It is prepared from the cash book at the end of the Financial year.  

Income and expenditure Account: the surplus or deficit of a particular period for non-trading concern is determined by drawing up an income and expenditure account.   

TS Grewal Class 12 Accountancy Solutions Vol 1 Chapter 1 Sample Questions  

In this section, the students will get TS Grewal Class 12 Accountancy Solutions Vol 1 Chapter 1 Sample Question. These will provide a glimpse of the questions.  

Q. What are the essential features of the Receipts and Payment Accounts?  

A. Features of Receipts and Payments Account:  

1. Nature: It is an asset account since it is a summary of cash receipts and cash payments including bank balance.  
2. Basis of Preparing: It is prepared on a cash basis i.e., transactions and events which have been received or paid in cash are shown in the account.  
3. Period: It records cash and bank transactions without distinguishing among current, previous, or succeeding (next) accounting periods.  
4. Opening and closing Balance: The opening Balance of this account shows cash in hand and/or a bank at the beginning of the accounting period and the closing balance shows cash in hand and/or a bank at the end of the accounting period.  

Q. Give three essential features of the Income and Expenditure Account.  

A. Features of Income and Expenditure Account:-  

1. Nature: It is a Nominal Account. Hence, it is debited with expenses and losses and it is credited with income and gains.  
2. Opening and Closing Balance: It does not have an opening Balance. Its Balance all the end is either surplus or deficit. It is transferred to the Capital fund in the Balance sheet.   
3. Adjustment: This account is prepared on the accrual basis of accounting and thus all adjustments relating to prepaid or outstanding expenses and income, provision for depreciation, or doubtful debts are made.  

Q. Differentiate between the Receipts and Payments Account and Cash Account.  

Basis	Receipt and Payment Account	Cash Account
Basis	It is a summary of the Cash Book and is prepared from the cash book	It records each transaction of receipt and Payment separately
Period	Receipt and Payment Account is prepared at the end of the accounting year.	Cash Book is written on a daily basis
Date	Transactions under this are not written date-wise.	It is prepared are recorded date wise in the Cash Book
Institutions	It is prepared by the Not for Profit organization	It is prepared by al organizations be it Not for Profit Organisation or a Commercial establishment
Side	Under it, there are receipts and payments sides instead of debit and credit sides.	Cashbook is divided into debit and credit sides.
Ledger Folio	There is no column if Ledger Folio	Cashbook has a separate column for Ledger Folio.

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