Question

how is capital fund calculated?

Answer 1

The amount of this fund is calculated by deducting the amount of liabilities from the value of assets. In this manner we can say that the method of finding out this fund is exactly same that as of calculating the capital of any business enterprise.

Answer 2

Answer:

In the case of a Not-for-profit organization, the Capital fund can be considered as an excess of its assets over its liabilities. Any surplus or deficit ascertained from the Income and Expenditure account is added to (deducted from ) the capital fund.

Explanation:

Capital funding: It is the money that lenders and equity holders provide to a business for daily and long-term needs. A company's capital funding consists of both debt (bonds) and equity (stock). This money is used in business for operating capital.

Capital = Assets – Liabilities.

Working capital is calculated by taking a company's current assets and deducting current liabilities.