ACCOUNTS FROM NON-TRADING CONCERN
Important definition for 2nd year college student of Accounts & Commerce.
1. What is meant by non-trading concern.
Ans: Institutions or individuals with activities other than trade are known as Non-trading concern.
2. What is receipts and payments account.
Ans: A receipt and payment account is a summary of cash book.
3. What is income and expenditure account.
Ans: This account shows the deficit or surplus of non-trading concern.
4. What is difference between receipts and payment a/c and income and expenditure a/c.
Ans: Receipts and payment account is the summary of cash book, whereas income and expenditure a/c is prepared for calculate surplus or deficit of non-trading concern.
5. What is capital fund.
Ans: The difference between opening assets and opening liabilities is called capital fund.
6. Define Legacy.
Ans: The amount or property received as per the will of deceased person called legacy.
7. What is Entrance fee/Admission fee.
Ans: The amount received from the new members of NON-TRADING concern at the time of admission is called Entrance/Admission fee.
8. What is surplus.
Ans: When the income of non-trading concern are more than the expenditure, this is called surplus.
9. What is Deficit/deficiency.
Ans: Excess of expenditure over Income of non-trading concern is called Deficit.
10. What is honorarium.
Ans: The amount paid to the person who is not the employee of the organization is called honorarium.
11. What is subscription.
Ans: The amount received from the members of non-trading concern, monthly or annually is called subscription.
12. What is special subscription.
Ans: Amount received from members for some particular purpose other than the regular subscription is called special subscription.
13. What is life membership fee.
Ans: Any amount received from members in lump sum for the whole life is called life membership fee.
14. What is Donation.
Ans: The amount or things received by a non-trading concern as gift are called donation.