Junior Class 1 Answered
Why construction of building fund is transfered to capital fund?
Asked by Gaurav | 13 Feb, 2017, 06:18: PM
Expert Answer
Hi Gaurav,
Construction of Building is a capital expenditure and therefore it should be transferred from Building Fund (i.e., Special Fund) to Capital Fund.
It should be noted that once the purpose of Special Fund is fulfilled, the balance lying in that fund is then transferred to Capital Fund.
Answered by | 14 Feb, 2017, 05:26: PM