Question : Donations received for a special purpose:
Option 1: Should be shown on the Asset side of the Balance Sheet
Option 2: Should be shown on the Liability side of the Balance Sheet
Option 3: Should be shown on the credit side of the Income and Expenditure Account
Option 4: Should not be shown anywhere
Correct Answer: Should be shown on the Liability side of the Balance Sheet
Solution : The answer Should be shown on the Liability side of the Balance Sheet .
Donations received for special purposes are capital receipts; they should be shown on the liabilities side of the closing balance sheet. It represents an obligation to utilize funds for the specified purpose which the organization is accountable for. Hence, the correct option is 2.
Question : Complete the Table - Name of Account – Account group in financial Account Hint - Sundry Debtors – Balance sheet, Asset side
Indirect income ____ Current liabilities_____ Stock in hand _____
Question : Specific Donation received by NPO are shown in the:
Question : Subscription received in advance by a club are shown in the:
Question : Rent received Rs 3,500 and rent credited to Income and Expenditure Account is Rs 4,000, where would the difference be transferred?
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