alleryCapital Fund of NPO at start of year is computed by:
ANet cash receipts only
BOpening assets less liabilities
CClosing assets less liabilities
DTotal donations received
Answer & Solution
Correct answer: B. Opening assets less liabilities
1. Capital Fund = Opening Assets − Opening Liabilities.
2. It represents the net worth of the NPO at the start of the period.
3. Surplus/deficit during the year adds to/reduces this balance.
_Source: ICAI BoS Foundation Paper 1, Ch 8 "NPO", §3.3 (i)_
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