alleryStart learning →The capital fund of a not-for-profit organisation is also called the:
ASinking fund or the reserve fund
BPrize fund or the tournament fund
CGeneral fund or accumulated fund
DWorking fund or the revenue fund
Answer & Solution
Correct answer: C. General fund or accumulated fund
1. The capital fund plays the role that capital plays in a trading concern's balance sheet.
2. The textbook states that the capital fund is also called the general fund or the accumulated fund.
3. It is taken to the liabilities side of the balance sheet.
4. Surplus from the income and expenditure account is added to it, and a deficit is subtracted from it.
5. Prize funds and tournament funds are specific funds shown separately, not alternative names for the capital fund.
_Source: TN HSC Class 12 Accountancy (Samacheer Kalvi, Govt of Tamil Nadu), Unit 2 "Accounts of Not-for-Profit Organisation", §2.6_
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