In a not for profit making organization, the excess of income over expenditure is
Answer Details
In a not for profit organization, any excess of income over expenditure is not considered as profit. Rather, it is added to the accumulated fund. The accumulated fund represents the accumulated surplus of the organization over time, and it is used to finance the organization's future activities. This is because not for profit organizations do not have shareholders or owners who can claim any surplus or profit generated by the organization. Therefore, any excess of income over expenditure is added to the accumulated fund, which is essentially the organization's equity.