In non profit organisation we write various funds like game fund prize fund etc on the liabilities side.
and when there is any expenses we minus it from the fund amount. But what are the two effects of the expenses for the fund. for eg we minus prize award from prize fund.what is the second effect? is it in p&L? but then both will become debit effects only what is the credit effect?
My Friend, deducting from fund is the second effect.
For eg., Prize award Dr.
To cash
and then, Prize Fund Dr.
To Prize award.
The credit will increase more so before choose any decision you have to think more about finance.Further details you can visit this site
| https://banksindia.net |
No effect in P&La/c as it is paid out of corpus fund
entry will be
Prize fund a/c .......Dr.
To cash a/c or Bank a/c
CAclubindia
