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Question
______ depicts the capital fund of the organization.
Options
Profit and Loss Account
Trading Account
Balance Sheet
Nominal Account
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Solution
Balance Sheet depicts the capital fund of the organization.
Explanation:
The balance sheet is a financial position statement that clearly illustrates an organization’s capital fund (or general fund) on the liabilities side. It provides a financial snapshot of cumulative surpluses, life membership fees, and capital receipts over time, whereas the other alternatives are income statements or account classifications that only track operating revenue or expenses.
RELATED QUESTIONS
Justify either for or against by giving a reason for the following statement. ‘Income and Expenditure account shows the opening and closing balances of cash in hand and cash at bank.’
State any three points of difference between ‘Receipts and Payment Account’ and ‘Income and Expenditure Account’.
Give any two uses of Income and Expenditure Account.
The closing balance of this account shows surplus/deficit ______.
How will Income and Expenditure account benefit a non-trading sports organisation?
How is Receipts & Payments Account different from Income & Expenditure Account?
It is a summary of all incomes and expenses of the current accounting year. It is prepared to know the surplus or deficit during the accounting year.
The closing balance of this Account shows surplus or deficit for the year.
Explain the term deficit in Income and Expenditure Account.
Distinguish between Receipt and Income.
