2017 · Q63
Legacies are generally
General Accounting Principles, Auditing and InsuranceFinal accounts
- Acapitalized and taken to Balance Sheet
- Btreated as income
- Ctreated as expenditure
- DNI capitalized and taken to Suspense Account
Explanation
Legacies are bequests received by a non-profit organisation: non-recurring capital receipts. They are capitalised and taken to the Balance Sheet (usually credited to the capital fund), not treated as revenue income or expenditure, and never parked in a suspense account. Hence A.