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SSC Financial and Cost Accounting P-1 QUESTION #9665
Question 1
In accounting for Non-Profit Organizations, the Accumulated Fund (Capital Fund) is computed as:
  • Total subscriptions collected during the year
  • Total income minus total expenditure for the year
  • Assets minus Liabilities as on the opening date via Statement of Affairs✔️
  • Donations plus grants received during the year
Correct Answer Explanation
The opening balance of Capital Fund is computed through the Statement of Affairs on the opening date: Capital Fund = Total Assets – Total Liabilities. This mirrors the owner's equity calculation in business entities. Subsequent surpluses/deficits and capital receipts are then adjusted to arrive at the closing balance.