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7. If Life Membership Fee of Rs. 5,000 wrongly treated as revenue receipt then effect of this error on surplus and closing balance of Capital Fund will be:(a) Capital Fund increased and Surplusincreased by Rs. 5,000.(b) Capital Fund decreased and Surplusincreased by Rs. 5,000.(c) No effect on Capital Fund but Surplusincreased by Rs. 5,000.(d) Capital Fund decreased by Rs. 5,000but no effect on Surplus.​

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