Question

Donations received for a special purpose ______

पर्याय

• Should be credited to the Income and Expenditure Account.

• Should be credited to a separate account and shown on the Balance Sheet.

• Should be shown on the assets side of the Balance Sheet.

• Should not be recorded at all.

Answer 1

Donations received for a special purpose Should be credited to a separate account and shown on the Balance Sheet.

Explanation:

Donations received for a specific purpose must be used for a specific activity - this is a capital receipt. It should be recorded in a separate account, and expenses should be deducted solely from that account. The account's balance will be shown as a liability on the Balance Sheet.