Accountancy Part AAccounts for Non Profit Organsiation

Select the Liabilities which are shown in the Balance Sheet of a Not-…

Select the Liabilities which are shown in the Balance Sheet of a Not-for-Profit Organisation.

(A) Bank Overdraft.
(B) Contingent Liabilities
(C) Legacies received during the year.
(D) General Fund.
(E) Subscription Received in Advance.

Choose the correct answer from the options given below.

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → (A), (C), (D) and (E) only

The liabilities side of a not-for-profit organisation’s Balance Sheet shows the capital (general) fund, items capitalised into it such as legacies, special funds and the outside liabilities.

(A) Bank Overdraft — True. Money owed to the bank is a liability.

(B) Contingent Liabilities — False. These may or may not arise; they are not shown in the Balance Sheet totals.

(C) Legacies received during the year — True. They are capital receipts added to the capital fund on the liabilities side.

(D) General Fund — True. It takes the place of capital.

(E) Subscription Received in Advance — True. It is income received in advance, owed to members as service in the next year.

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):
Balance Sheet

Extract from the NCERT textbook

NCERT (Pre-rationalised edition):
Preparation of Balance Sheet – “… 1. Take the Capital/General Fund as per the opening balance sheet and add surplus from the Income and Expenditure Account. Further, add entrance fees, legacies, life membership fees, etc. received during the year.”