Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounts for Non Profit Organsiation

Question:

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

Options:

Legacy

Donation

Capital receipt

Windfall gain

Correct Answer:

Legacy

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.