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Answer in One Sentence Only. - Book Keeping and Accountancy

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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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Chapter 7: Accounts of 'Not For Profit' Concerns - Exercise 1 [Page 227]

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Micheal Vaz Book Keeping and Accountancy [English] 12 Standard HSC Maharashtra State Board
Chapter 7 Accounts of 'Not For Profit' Concerns
Exercise 1 | Q 2 | Page 227
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