Question

Legacies are generally __________.

• A. capitalized and taken to balance sheet
• B. treated as income
• C. treated as expenditure
• D. treated as other incomes

Answer 1

Answer: (A)

capitalized and taken to balance sheet

An amount received by a non profit organization as per will is called as legacy. It should be considered as receipts and to be recorded in the receipts and payment account. Legacy should be recorded as capital receipt because it it received for a specific purpose. This has to be added to capital fund and to be taken in the balance sheet.