Read the following information provided by a school and attempt Question:

The Trial Balance of a school as on 31.3.2017 is

Additional Information:

The book value of the furniture sold was ₹50,000 on April 1, 2016 was sold for ₹20,000.

General Fund is also known as:

Capital Fund

The correct answer is Option (3) → Capital Fund.

General Fund is also known as Capital Fund.

‘Not-for-Profit’ Organisations prepare Balance Sheet for ascertaining the financial position of the organisation. The preparation of their Balance Sheet is on the same pattern as that of the business entities. It shows assets and liabilities as at the end of the year. Assets are shown on the right hand side and the liabilities on the left hand side. However, there will be a Capital Fund or General Fund in place of the Capital and the surplus or deficit as per Income and Expenditure Account which is either added to/deducted from the capital fund, as the case may be. It is also a common practice to add some of the capitalised items like legacies, entrance fees and life membership fees directly in the capital fund.Some times it becomes necessary to prepare Balance Sheet as at the beginning of the year in order to find out the opening balance of the capital/general fund.