Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounts for Non Profit Organsiation

Question:

......................is the amount received as per the will of a deceased person.

Options:

Honorarium

Entrance Fees

Donation

Legacies

Correct Answer:

Legacies

Explanation:

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. If the use is not specified it is considered as revenue nature and credited to income and expenditure account.