"In N.P.O. ,all the capital receipts are shown on the liabilities side of balance sheet. Winning a LOTTERY is also a receipt of capital nature. But how can it be shown on the liabilities side???"
Hi Shubham,
First of all let us understand the meaning of Capital Receipts. These are those receipts of the organisation which are the benefit of which can taken in current year as well as in future years. Such receipts are not received regularly or at regular intervals.
So, winning a lottery is also form a part of capital receipt for Not-for-Profit Organisation because it is not the regular income of the organisation or we can say that it is non-recurring in nature.
Moreover, all the capital receipts of the Not-for-Profit Organisation are shown on the Liabilities side of the Balance Sheet, therefore, winning from Lottery is also shown on the Liability side of the Balance Sheet.
I hope this answers your query.
Keep Posting!!
First of all let us understand the meaning of Capital Receipts. These are those receipts of the organisation which are the benefit of which can taken in current year as well as in future years. Such receipts are not received regularly or at regular intervals.
So, winning a lottery is also form a part of capital receipt for Not-for-Profit Organisation because it is not the regular income of the organisation or we can say that it is non-recurring in nature.
Moreover, all the capital receipts of the Not-for-Profit Organisation are shown on the Liabilities side of the Balance Sheet, therefore, winning from Lottery is also shown on the Liability side of the Balance Sheet.
I hope this answers your query.
Keep Posting!!