Donation received for specific objective will be shown :

In income and expenditure account

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On capital and liabilities side of balance sheet

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On assets side of balance sheet

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None of these

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Solution

The correct option is B
On capital and liabilities side of balance sheet

Specific donations are shown on the liabilities side of balance sheet

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Similar questions

Prepare Income and Expenditure Account and Balance Sheet for the year ended December 31, 2006 from the following Receipt and Payment Account and Balance Sheet of culture club:

Receipt and Payment Account for the year ending December 31, 2006
Receipts		Amount Rs	Payments	Amount Rs
Opening cash balance		12,000	Furniture	4,000
Subscription			Telephone expenses	800
2005	2,000		Salary
2006	22,000	24,000	2005	1,000
Entrance fees		2,800	2006	4,000
Locker rent		1,000	Newspapers	700
Life membership fee		1,200	Sundry expenses	1,000
Government grant		11,000	Defence bonds	18,000
			Land	20,000
			Closing cash balance	2,500
		52,000		52,000

Balance Sheet for the year ending December 31, 2005
Liabilities	Amount Rs	Assets	Amount Rs
Advance locker rent	200	Cash in hand	12,000
Subscription Received in Advance	1,000	Outstanding Expenses	3,000
Outstanding salary	2,000	Building	35,000
Loan	10,000
Capital fund	36,800
	50,000		50,000

On dissolution, how will you deal with partner's loan if appears on the

(a) assets side of the balance sheet,

(b) liabilities side of balance sheet.

Q. At the beginning of accounting year the following particulars are extracted value of Assets Rs. 25,000, Liabilities Rs. 5,000, Debit balance of income and expenditure account Rs. 2,500. Then capital fund will be ____________.

Q. Comparing items on _________ side of the Receipts and Payment Account with ________ side of the Income and Expenditure account is one of the step adopted in preparation of balance sheet.

On dissolution, how you deal with partner’s loan if it appears on the

(a) Assets side of the Balance Sheet.

(b) Liabilities side of the Balance Sheet.

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Donation received for specific objective will be shown :

The correct option is B On capital and liabilities side of balance sheet Specific donations are shown on the liabilities side of balance sheet

The correct option is B
On capital and liabilities side of balance sheet

Specific donations are shown on the liabilities side of balance sheet