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Surplus from Income & Expenditure A/c of a club is added to
ACapital Fund
BProfit & Loss A/c
CTrading A/c
DSuspense A/c
Answer & Solution
Correct answer: A. Capital Fund
1. Clubs and societies do not have proprietors; they hold a Capital (or General) Fund.
2. The surplus increases the Capital Fund; deficit decreases it.
3. The other accounts listed are not used by NFP entities.
4. Hence (A) is correct.
_Source: Maharashtra Balbharati Std XII Book-Keeping & Accountancy, Ch 2 "Accounts of 'Not for Profit' Concerns", §2.4 ¶§2.4_