Pragya Madan, an Ex Indian hockey woman player decided to start a hockey academy to train young enthusiastic girls of her village with the support of her family, She started Bright Hockey Academy. On 1st April 2022. Her neighbor Ishwar died and he willed his land to start the academy. Her father 'Ramkumar' spent Rs.20,00,000 for construction of pavilion. 100 young girls joined the academy and they paid yearly of Rs.1,000 each. 10 members paid a single amount Rs.25,000 to get life membership. Hockey and balls purchased during the year amounted to Rs.27,000 Closing stock of these item is nil. Based on the above information you are required to answer the questions.
Land donated by neighbor is
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Legacy
Ishwar left the land to the academy by his will. An amount or property received under the will of a deceased person is a legacy. Here the use is specified (to start the academy), so it is a capital receipt.
Option (2) Special receipts — Incorrect. This is not a term used for such an item; property received under a will has its own name, legacy.
Option (3) General Receipts — Incorrect. A general receipt is a revenue receipt for the general purpose of the organisation; this is a gift of land made by will.
Option (4) Capital Fund — Incorrect. The capital fund is where such capital receipts may be added; it is not the name of the receipt itself.
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): |