Question

Legacy is generally shown on the____________.

• A. Debit side of Receipts and Payments A/c
• B. Credit side of Receipt and Payments A/c.
• C. Debit side of Income and Expenditure A/c.
• D. Credit side of Income and Expenditure A/c

Answer 1

The correct option is A Debit side of Receipts and Payments A/c

Option A is correct. Legacy is the amount which a not for profit organisation receive as per the will of a deceased person. As this is a receipt it is recorded on debit side of Receipts and Payments A/c.

On credit side all payments are shown. It is being an item of non recurring nature shown on liabilities side of Balance Sheet not in Income and Expenditure A/c.