Case Study Information (Questions 41-45):Pragya Madan, an ex-Indian hockey player, decided to start a hockey academy named "Bright Hockey Academy" on 1st April 2022 to train young girls.Her neighbor, Ishwar, died and willed his land to start the academy.Her father, Ramkumar, spent ₹20,00,000 for the construction of a pavilion.100 young girls joined the academy and paid an annual subscription of ₹1,000 each.10 members paid a single amount of ₹25,000 each to obtain life membership.Hockey sticks and balls purchased during the year amounted to ₹27,000. Closing stock of these items is nil.Question: The land donated by the deceased neighbor Ishwar under his will is classified as:
- ALegacy
- BSpecial receipts
- CGeneral Receipts
- DCapital Fund
Solution & Step-by-step Explanation
A Legacy represents property or cash received by a Not-for-Profit Organization as per the will of a deceased person. Since the neighbor Ishwar willed his land to the academy upon his death, it is a Legacy.