Question

How is Capital Fund calculated (for a Not-for-Profit Organisation)?

Hint:

Think “net worth” of an NPO: Capital Fund is the balancing figure of opening Balance Sheet.

Answer 1

Step 1: Opening computation.
Prepare the opening Balance Sheet of the NPO. Compute: \[ \text{Capital Fund} = \text{Assets (excluding specific funds)} - \text{External Liabilities}. \]
Step 2: Year-end adjustment.
Closing Capital Fund \(= \text{Opening Capital Fund} + \text{Surplus} - \text{Deficit} + \text{Capitalised receipts}\) (e.g., life membership fees if capitalised, entrance fee if treated as capital).
Final Answer: \[ \boxed{\text{Capital Fund} = \text{Assets} - \text{Liabilities (opening)}\ \text{; adjust by Surplus/Deficit thereafter}} \] % Quciktip