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

Capital fund

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Partners' capital

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Cash

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Owner's fund

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Solution

The correct option is A Capital fund
The funds raised by not-for-profit-organisation are transferred to the capital fund. This is because like any other profit earning organisation they don't have a capital account to be shown in balance sheet. So, the excess of assets over liabilities is credited to capital fund.

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Similar questions

Funds required for purchasing current assets is an example of

(a) Fixed capital requirement

(b) Ploughing back of profits

(d) Lease financing

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