What is Capital Fund? How is it calculated?
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
NCERT questions are designed to test your understanding of the concepts and theories discussed in the chapter. Here are some tips to help you answer NCERT questions effectively:
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...
Step-by-step explanation:
• 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
This question is important because it tests key concepts from the NCERT syllabus and is frequently asked in CBSE exams.
This question is based on core NCERT concepts explained in the chapter and should be revised thoroughly before exams.
Students often lose marks by skipping steps, writing incomplete explanations, or misunderstanding keywords used in the question.
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