State whether the following statements are True or False
- Receipts and Payments Account is a summary of cash transactions during an accounting period.
- Receipts and Payments Accounts only items relating to revenue in nature.
- Receipts and payments records items which relate to current accounting period only.
- Non-cash items are shown in Receipts and Payments Account.
- Closing Balance in Receipts and Payments Account represents either Surplus or Deficit.
- Opening Balance is recorded in Income and Expenditure Account.
- Income and Expenditure Account is a Nominal Account.
- Income and Expenditure Account is a summarized cash book.
- Income and Expenditure Account records only items of revenue in nature.
- NPOs undertake trading activities also.
- Amount spent for the purchase of books by a public library is of revenue nature.
- Entrance fee is always to be capitalised.
- Donations received for specific purposes is of revenue nature.
- Outstanding incomes need not be adjusted, if accounts are kept on an accrual basis.
- All assets will be shown in Income and Expenditure Account as income.
- Donations will appear on the liabilities side of a Balance Sheet.
- Life membership fees have always to be treated as of revenue nature.
- Fixed Deposit has always to be capitalised.
- Balancing figure in the preparation of Balance Sheet at the beginning of the year represents surplus of deficit.
- Expenses paid for current year will appear in the Balance Sheet.
- Pre-paid expenses is an asset.
- Outstanding income is a liability.
- While preparing final accounts of a professional firm, value of work in progress is not to be taken into account.
- Balance of surplus is allocated among the partners in an agreed ratio.