Question :
The surplus generated by a not-for-profit organisation is:
Option 1: Distributed amongst the members
Option 2: Added to capital fund
Option 3: Credited to a special fund
Option 4: None of these
Correct Answer: Added to capital fund
Solution : Surplus is the excess of income over expenses in a non-profit organisation. Surplus is added to the capital fund in the closing Balance Sheet. Hence, the correct option is 2.
A credit balance of Income and Expenditure for
As all other business concerns be its sole
An account akin to Profit and Loss Account in
General donations are treated as:
Delhi Sports club has sports fund investment Rs.
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