Not-for-Profit

Accounting

Medium

Identify the treatment of Government Grant received from the government from following:

Treated as Revenue Income

Treated as capital Income

Treated as deferred Income

Treated as both capital as well as deferred income

✅ Correct Option: 2

In general, a government grant received for a specific capital purpose is treated as capital income and added to the capital fund (in NPO) or credited to a specific reserve. Grants for revenue purposes are credited to the Income and Expenditure Account. The standard textbook default treatment for a general government grant in NPO accounting is capital income.

Note: The question is ambiguous as the nature of the grant is not stated; we have taken it as a general capital receipt as per the commonly tested treatment.

2022: 20 Aug Shift 2

________ is the amount received as per the will of a deceased person.

2022: 20 Aug Shift 2

If the total income earned by Saket Club, a Not-for-Profit organisation is Rs. 2,60,000 and surplus earned is Rs. 85,000, then total expenditure incurred will be:

2024

The main source of revenue for 'not for profit' organisation is:

2022: 30 Aug Shift 2

It is the amount-paid to the person who is not the regular employee of the institution.

2024

Libraries run by charitable trusts are an example of:

2022: 20 Aug Shift 2

Extract of Receipt and Payment Account for the year ended on March 31, 2021 is given.

Calculate the amount of Stationery to be shown in Income and Expenditure A/c.

Payments for Stationery: Rs. 23,000

Additional Information:

	1 April, 2020	31 Mar 2021
Stock of Stationary	4,000	3,000
Creditors for stationery	9,000	2,500

Identify the treatment of Government Grant received from the government from following:

Solution

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