Read the following information provided by a school and attempt Question:
The Trial Balance of a school as on 31.3.2017 is
|
Debit Balance |
Amount (₹) |
Credit Balance |
Amount (₹) |
|
Building |
6,25,000 |
Admission fees |
12,500 |
|
Furniture |
50,000 |
Tuition fees received |
5,00,000 |
|
Library books |
1,50,000 |
Creditors for supplies |
15,000 |
|
Investment @12% (1.4.16) |
5,00,000 |
Rent for the school hall |
10,000 |
|
Salaries |
5,00,000 |
Miscellaneous receipts |
30,000 |
|
Stationery |
40,000 |
Legacies (general) |
3,50,000 |
|
General expenses |
18,000 |
General fund |
10,00,000 |
|
Sports expenses |
15,000 |
Donation for library books |
62,500 |
|
Cash at bank |
1,00,000 |
Sale of old furniture |
20,000 |
|
Cash in hand |
2,000 |
|
|
|
|
20,00,000 |
|
20,00,000 |
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:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Capital Fund
A not-for-profit organisation has no owners, so it keeps no capital account. In its place it keeps a Capital Fund, also called the General Fund. Funds raised from various sources and the yearly surplus are added to it.
Option (1) Restricted Fund — Incorrect. A restricted (special) fund, such as a sports fund or a prize fund, can be used only for its stated purpose; the general fund has no such limit.
Option (2) Assets Fund — Incorrect. There is no fund of this name; assets are what the funds are invested in.
Option (4) Surplus or Deficit — Incorrect. Surplus or deficit is the balance of the Income and Expenditure Account for one year; it is added to or deducted from the capital fund.
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): |