Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounts for Non Profit Organsiation

Question:

Which of the following is/are correct?

Options:

Specific Donation is a revenue receipt.

General Donation is a capital receipt.

Both 1 and 2 are correct.

Both 1 and 2 are incorrect

Correct Answer:

Both 1 and 2 are incorrect

Explanation:

Specific Donation is a capital receipt and is shown in liability side while the general donation is revenue receipt and shown in Income and Expenditure statement.