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SSC Financial and Cost Accounting P-1 QUESTION #9656
Question 1
A non-profit organization has a Capital Fund of Rs. 30,000 at the start of the year. During the year, surplus income over expenditure = Rs. 14,150 and entrance fees (capital receipt) = Rs. 800 were received. What is the Closing Capital Fund?
  • Rs. 44,150
  • Rs. 44,950✔️
  • Rs. 45,800
  • Rs. 30,000
Correct Answer Explanation
Closing Capital Fund = Opening Capital Fund + Surplus + Capital Receipts = 30,000 + 14,150 + 800 = Rs. 44,950. Unlike business entities, non-profit organizations use Capital Fund instead of owner's equity, and capital receipts such as entrance fees and specific donations are added directly to it.