Commercial Applications
…………… depicts the Capital Fund of the organisation.
- Profit and Loss Account
- Trading Account
- Balance Sheet
- Nominal Account
Answer
Balance Sheet
Reason — The Balance Sheet of a non-trading organisation depicts the Capital Fund. It appears on the liabilities side and is calculated by adjusting the opening capital fund with surplus/deficit from the Income and Expenditure Account along with capital items like life membership fees, entrance fees, legacies and donations.
Related Questions
…………… records all cash transactions whether they belong to the current year, previous year or future year.
- Profit & Loss Account
- Income & Expenditure Account
- Receipts & Payments Account
- Personal Account
With reference to Receipts & Payments Account which feature(s) is/are correct?
Statement 1: It is a real account.
Statement 2: It reveals the surplus or deficit for the year.
Statement 3: It is a summary of cash receipts.
Statement 4: It contains non-cash items.
- 1 and 3
- 2 and 4
- Only 3
- Only 4
What are fictitious assets? Give one example.
Give one difference between the Profit and Loss Account and the Balance Sheet.