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Question
Write the word/phrase/term, which can substitute the following sentence.
The excess of total assets over total liabilities of a ‘Not for Profit’ Concern.
One Word/Term Answer
Solution
Capital Fund
Explanation: In case of not-for-profit organisations, an excess of assets over liabilities is called capital fund. It is similar to the capital account in case of profit-making entities. Any surplus/ deficit shown by the Income and Expenditure Account will be added/ deducted from the opening capital and the net capital fund will be shown on the Liabilities side of the Balance Sheet.
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Features of "Not for Profit" Concerns.
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