Question

Q.1 Which of the following represent capital receipt:
A) Life membership subscription
B) donation
C) Subscription
D) Interest on investments.​

Answer 1

life membership subscription

Answer 2

Answer:

Life membership subscription is the capital receipt of the non profit organization

Explanation:

• Life membership subscription is the receipt of the organisation from the members which is the income of the NGO
• Donation is the receipt which is a revenue in nature that is used for the business, if the donation is received for particular norms like building, education etc ., which are affected in capital receipt and in balance sheet under the head of particular fund account
• Subscription it is a revenue receipt collected from the members of the organisation, received monthly or quarterly
• Interest on investment is a revenue receipt received against the investment regularly in a periodic time