Funds raised by Not-for-Profit Organisations through various sources is __________account.

credited to capital fund

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debited to capital fund

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credited to assets

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debited to assets

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Solution

The correct option is A credited to capital fund
Funds raised by Non-for-Profit organisations through various sources is credited to capital fund. Capital fund is the excess of assets over liabilities. So, the excess amount which is mostly the income of organisation is the funds raised by them. Any addition in funds will be added ro capital fund/general fund.

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Similar questions

Q. The funds raised by not-for-profit organisations are credited to _________.

Q. Funds raised by such Not-for-Profit organisations are credited to ________.

Funds required for purchasing current assets is an example of

(a) Fixed capital requirement

(b) Ploughing back of profits

(d) Lease financing

Q. Consider the following statements.
1. Operational loss is a source of funds
2. Decrease in working capital is a source of funds
3. Addition to fixed assets are an application of funds
4. Fresh introduction of capital is an application of funds
Which of the above statements are applicable while preparing the funds flow statement?

Meca Ltd., a reputed automobile manufacturer needs rupees ten crores as additional capital to expand its business. Atul Jain, the CEO of the company wanted to raise funds through equity. On the other hand, the Finance Manager, Nimi Sadheve said that the public issue may be expensive on account of various mandatory and non-mandatory expenses. Therefore, it was decided to allot the securities to institutional investors. Name the method through which the company decided to raise additional capital.

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