Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounts for Non Profit Organsiation

Question:

Deficit balance of Income and Expenditure Statement of a NPO is shown in the balance sheet as :

Options:

Asset

Liability

Owners Equity

Deducted from the capital fund

Correct Answer:

Deducted from the capital fund

Explanation:

The deficit balance of the Income and Expenditure Statement is deducted from the capital fund.