Accountancy Part AAccounts for Non Profit Organsiation

Funds raised by the Not-for-profit organisation through various sourc…

Funds raised by the Not-for-profit organisation through various sources are credited to:

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → Capital fund or general fund

A Not-for-Profit Organisation has no owners’ capital; the funds it raises from its various sources, and its surpluses, are credited to the capital fund (general fund).

Note: This question is from the pre-rationalised NCERT book. The topic is not there in the latest NCERT book (2026-27), and it is also out of the CUET 2026 syllabus.

NCERT (Pre-rationalised edition):
Meaning and Characteristics of Not-for-Profit Organisations – “… 5. The funds raised by such organisations through various sources are credited to capital fund or general fund.”