Multiple choice

The donations received by non-profit organisations for a specific purpose are

  1. revenue receipts and thus, shown on credit side of income and expenditure account

  2. revenue receipts and thus, shown on debit side of income and expenditure account

  3. capital receipts and thus, shown on credit side of income and expenditure account

  4. capital receipts and thus, shown on liabilities side of the balance sheet

  5. capital receipts and thus, shown on assets side of the balance sheet
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

It is correct. These are capital receipts and are shown on liabilities side.

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