Practice Format Of Income And Expenditure Account (10.4.2) - Non-Trading Organisations
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Format of Income and Expenditure Account

Practice - Format of Income and Expenditure Account

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Practice Questions

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Question 1 Easy

What does the Income and Expenditure Account summarize?

💡 Hint: Think about what this account represents for financial performance.

Question 2 Easy

What is meant by a surplus?

💡 Hint: Consider what happens to the finances when more is received than spent.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What is the purpose of the Income and Expenditure Account?

To show profit
To detail income and expenses
To list assets

💡 Hint: Consider what information the account is designed to convey.

Question 2

True or False: The Income and Expenditure Account is prepared on a cash basis.

True
False

💡 Hint: Review the principles behind how income and expenses are categorized.

1 more question available

Challenge Problems

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Challenge 1 Hard

An NGO received ₹500,000 in grants, ₹100,000 in donations, and ₹50,000 in interest during the year. It spent ₹450,000 on programs and ₹100,000 on operational costs. Calculate the surplus or deficit.

💡 Hint: Add up incomes and expenditures separately, and then find the difference.

Challenge 2 Hard

If a non-profit organization has a deficit of ₹30,000 this year but generated a surplus of ₹50,000 last year, what is the cumulative effect on its financial status?

💡 Hint: Consider how previous surpluses and deficits interact to reflect financial health.

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