Effect of specific donations _______________.

liabilities side of the Balance Sheet

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asset side of the Balance Sheet

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debit side of income & expenditure

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credit side of income & expenditure

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Solution

The correct option is A liabilities side of the Balance Sheet
Effect of specific donations liabilities side of balance sheet. Specific donations is a donation received for a specific purpose say for constructing a building. Specific donations are not charged to income and expenditure account rather capitalised and shown on the liabilities side and any expenses of the same are deducted from the fund.

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Similar questions

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

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(b) liabilities side of balance sheet.

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