Donation received for pavilion ₹4,600

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Target Exam

CUET

Subject

Accountancy

Chapter

Accounts for Non Profit Organsiation

Question:

Donation received for pavilion ₹4,600 is a:-

Options:

Asset

Capital receipt

Revenue receipt

None of these

Correct Answer:

Capital receipt

Explanation:

The correct answer is option 2- Capital receipt.

Donation for pavilion is a capital receipt as the donation is for a specific purpose and it will be shown in the Liabilities side of balance sheet.