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Question
Write the word/phrase/term, which can substitute the following sentence.
The excess of total assets over total liabilities of a ‘Not for Profit’ Concern.
One Word/Term Answer
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Solution
Capital Fund
Explanation:
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 of the Balance Sheet.
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