Match List – I with List – II. LIST - I LIST - II A. Special Fund I.… | Accountancy Part A CUET question

Match List – I with List – II.

LIST - I	LIST - II
A. Special Fund	I. Will of deceased
B. Endowment Fund	II. Gift
C. Legacy	III. Recurring Revenue
D. Government Grant	IV. Prize fund

Choose the correct answer from the options given below :

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → A-IV, B-II, C-I, D-III

(A) Special Fund — this matches (IV) Prize fund. Prize funds, match funds and sports funds are special funds.

(B) Endowment Fund — this matches (II) Gift. It arises from a bequest or gift.

(C) Legacy — this matches (I) Will of deceased. It is received under the will of a deceased person.

(D) Government Grant — this matches (III) Recurring Revenue. Recurring (maintenance) grants are revenue receipts.

Note: This question is from the pre-rationalised NCERT book. The topic is not there in the latest NCERT book (2026-27), but it is still in the CUET 2026 syllabus, so do not skip it.

NCERT (Pre-rationalised edition):
Special Funds – “… The Not-for-Profit Organisations office create special funds for certain purposes/activities such as 'prize funds', 'match fund' and 'sports fund', etc. Such funds are invested in securities and the income earned on such investments is added to the respective fund, not credited to Income and Expenditure Account.”

NCERT (Pre-rationalised edition):
Endowment Fund – “… It is a fund arising from a bequest or gift, the income of which is devoted for a specific purpose. Hence, it is a capital receipt and shown on the Liabilities side of the Balance Sheet as an item of a specific purpose fund.”

NCERT (Pre-rationalised edition):
Legacies – “… It is the amount received as per the will of a deceased person who may or may not specify the use of the amount. Legacies, use of which is specified are specific legacy and is shown in the balance sheet as liability.”

NCERT (Pre-rationalised edition):
Government Grant – “… Schools, colleges, public hospitals, etc. depend upon government grant for their activities. The recurring grants in the form of maintenance grant is treated as revenue receipt (i.e. income of the current year) and credited to Income and Expenditure account.”