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Question
What is Capital Fund? How is it calculated?
What is Capital Fund? How is it calculated?
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Solution
In case of Not-for-profit organisation capital fund can be considered as excess of its assets over its liabilities. Any surplus or deficit ascertained from Income and Expenditure account is added to (deducted from) the capital fund. This is also termed as Accumulated Fund.
In case of Not-for-profit organisation capital fund can be considered as excess of its assets over its liabilities. Any surplus or deficit ascertained from Income and Expenditure account is added to (deducted from) the capital fund. This is also termed as Accumulated Fund.
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