Class 12 Accountancy - Chapter Accounting for Not-for-Profit Organisation NCERT Solutions | What is Capital Fund? How is it calculat

Welcome to the NCERT Solutions for Class 12th Accountancy - Chapter Accounting for Not-for-Profit Organisation. This page offers a step-by-step solution to the specific question from Excercise ".$ex_no." , Question 7: what is capital fund how is it calculated....
Question 7

What is Capital Fund? How is it calculated?

Answer

In case of Not-for-profit organisation, Capital fund can be considered as excess of its assets over its liabilities. Any surplus or deficit ascertained from Income and Expenditure account is added to (deducted from ) the capital fund.

This is termed as an Accumulated Fund.

Calculation of Capital Fund

 

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