31. What is an ‘Endowment
Fund’?
Ans. A fund
created by ‘Not for profit’ concern from the gift or donation given by the
donor, the income of which is used or devoted for specific purpose is called
endowment fund.
32. What is ‘Life Membership
Fee’?
Ans. The fee
paid by a person who desired to become a member of the organisation for his
whole life is called as ‘Life Membership Fee’.
33. What do you mean by Single
Entry System?
Ans. A book –
keeping system that only records one aspect of each business transaction. i.e.
either debit or credit is called single entry system.
34. Which accounts are normally
kept under the single entry system?
Ans. Generally,
the personal accounts relating to debtors and creditors and cash – book are
kept under the single entry system.
35. Which statement is prepared
under the single entry system to ascertain the capital?
Ans. Statement
of Affairs is prepared under the single entry system to ascertain the capital.
36. What is Statement of
Affairs?
Ans. A
statement which is prepared under the single entry system on the basis of
estimated balances of various assets and liabilities is called ‘Statement of
Affairs’.
37. Which statement is prepared
under the single entry system to ascertain profit?
Ans. Statement
of Profit or Loss is prepared under the single entry system to ascertain
profit.
38. What do you mean by
qualified acceptance?
Ans. If the
drawee of a bill of exchange accepts it on condition that the time or amount of
the bill be changed or adds some other conditions to the bill, his acceptance is called a qualified
acceptance.
39. What is the term of the
bill of exchange?
Ans. The period
for which the bill of exchange is drawn and accepted is called the term of the
bill of exchange.
40. What is bill of exchange?
According to
Section 5 of the Negotiable Instrument Act, 1881, "A Bill of Exchange is
an instrument in writing and containing an unconditional order, signed by the
maker, directing a certain person to pay on demand or at a future date a
certain sum of money only, to the order of a certain person or to the bearer of
the instrument".