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    • Question

      A not-for-profit organisation receives a donation of

      ₹1,00,000 for constructing a new building. How should this be treated in the financial statements?
      A Credited to a Separate Fund under Liabilities Correct Answer Incorrect Answer
      B Debited to the Capital Fund Correct Answer Incorrect Answer
      C Treated as a revenue receipt Correct Answer Incorrect Answer
      D Credited to the Income and Expenditure Account Correct Answer Incorrect Answer

      Solution

      The correct answer is A

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