Why is specific donation capitalised?
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Explanation:
spacific donation is a donation recieved for a spacific purpose say for constructing a building specific
donation are not charged to income and expenditure account rather capitalised and shown on the liabilities
side and any expencess on the of the same are deducted from the fund
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Answer:
The amount of general donation is an income and we credit it to Income and Expenditure Account. Specific Donation: ... It means the donation should be used only for the library, i.e., it is a specific donation. Specific donations are capitalized and are shown on the liabilities side of the Balance Sheet.
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