Foundation
Elements Of Book Keeping And Accountancy
Accounting Equation Effects
Capital and Revenue
Question
Any donation received for a specific purpose is an ________.
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Solution
Donation received by the non profit organization is a receipt and should be recorded in receipt and payment account.
A donation which is received as normal course without any specific condition, is considered as revenue receipt.
A donation which is received for a specific purpose is a capital receipts. This has to be utilized only for the specific purpose. This is a capital receipt.