alleryStart learning →A gift made to a not-for-profit organisation by a will is called a legacy. It is:
AA capital receipt
BA revenue receipt
CA capital expenditure
DA revenue expenditure
Answer & Solution
Correct answer: A. A capital receipt
1. The textbook defines a legacy as a gift made to a not-for-profit organisation by a will.
2. It states that a legacy is a capital receipt.
3. Being a receipt rather than an outgoing, it cannot be an expenditure of either kind.
4. In this book's worked illustrations, legacies are shown as a separate line on the liabilities side of the balance sheet.
_Source: TN HSC Class 12 Accountancy (Samacheer Kalvi, Govt of Tamil Nadu), Unit 2 "Accounts of Not-for-Profit Organisation", §2.4_
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