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Question
Answer in one sentence only.
What is Capital Fund?
One Line Answer
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Solution 1
In case of not-for profit organisations, excess of assets over liabilities is called capital fund. It is similar to the capital account in 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.
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Solution 2
Excess of assets over liabilites in case of not for profit concern is known as capital fund.
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