Which of the following is a capital receipt and shown on liabilities side of the balance sheet of a not for profit organization? *
1 point
(a) Prize fund investment
(b) Outstanding expenses
(c) Donation for tennis court
(d) Receipt from sale of match
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Explanation:
Donation for tennis court is the correct answer.
Because in npo if you see donation (i.e it is a general term), it is a revenue receipt and it will go to income in income & expenditure a/c and if you see donation for building, tennis court, fest, anything like that is specified about donation, then it will be considered as a capital receipt and thus it will go to liabilities. Hope you understood my answer.
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