alleryA specific donation for building construction is credited to:
ABuilding Fund Account
BCapital Fund directly
CIncome and Expenditure A/c
DCash Account directly
Answer & Solution
Correct answer: A. Building Fund Account
1. Specific-purpose donations are kept separately as restricted funds.
2. Crediting to Building Fund preserves the donor's intent.
3. The fund is shown on the liabilities side of the Balance Sheet.
_Source: ICAI BoS Foundation Paper 1, Ch 8 "NPO", §3.1 ¶3_
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