Question

Answer in one sentence only.

What is Capital Fund?

Answer 1

In the case of not-for-profit organizations, an excess of assets over liabilities is called a capital fund. It is similar to the capital account in the case of profit-making entities. Any surplus/ deficit shown by the Income and Expenditure Account will be added/ deducted from the opening capital, and the net capital fund will be shown on the Liabilities side.

Answer 2

Excess of assets over liabilites in case of not for profit concern is known as capital fund.

Answer 3

Capital fund consists of contributions, entrance fees, surplus income, legacies, and donations specifically received for capital fund.