Advertisements
Advertisements
Question
Answer in one sentence only.
What is Capital Fund?
One Line Answer
Advertisements
Solution 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.
shaalaa.com
Solution 2
Excess of assets over liabilites in case of not for profit concern is known as capital fund.
shaalaa.com
Solution 3
Capital fund consists of contributions, entrance fees, surplus income, legacies, and donations specifically received for capital fund.
shaalaa.com
Is there an error in this question or solution?
Chapter 2: Accounts of ‘Not for Profit’ Concerns - Exercise 2.1 (Objective Type Questions) [Page 113]
