Question

Any donation received for a specific purpose is an ________.

• A. Liability
• B. Assets
• C. Revenue receipts
• D. Capital receipts

Answer 1

The correct option is D Capital receipts

Donation received by the non profit organization is a receipt and should be recorded in receipt and payment account.

A donation which is received as normal course without any specific condition, is considered as revenue receipt.

A donation which is received for a specific purpose is a capital receipts. This has to be utilized only for the specific purpose. This is a capital receipt.