Saved Bookmarks
| 1. |
Show the treatment of items of Income and Expenditure Account when there is a specific fund for those items. |
|
Answer» Specific fund or special donational are received by the non-profit organisations for specific reasons. These receipts are capital receipts. Example of such funds are donations, Government funds/ grands. The specific fund is normally a Capital Receipts any Payment out of such fund should reduced from balance sheet and normally any expenditures related to such fund should be debited to Income and Expenditure Accounts. Special fund kept aside for special event and such fund should be in balance sheet liability side and reduction or any reduction should be reduced in balance sheet through the Income and Expenditure. |
|