Education

Financial Aid Pass-Through (Federal Loans/Grants)

Recording the receipt of government financial aid that must be applied to a student's account.

Account NameTypeDebit ($)Credit ($)
Cash (Restricted)Asset (+)5,000.00-
Due to Students (Financial Aid)Liability (+)-5,000.00

💡 Accountant's Note

When a school receives federal funds, it is a liability initially. Once applied to the student's tuition bill, the liability is cleared against the Student Receivable.

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