Accountancy Part AAccounts for Non Profit Organsiation

Amount received as per the will of a deceased person is termed as:

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → Legacy

A legacy is money received under the will of a deceased person. If its use is specified it is capitalised; if not, it is treated as revenue.

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):
Some Peculiar Items – “… 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.”