Non-Profit
Recording Expenses Against Restricted Grant
Matching project expenses to the restricted funding received from a donor (Matching Principle in NGOs).
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Project Expense (Grant-Funded) | Expense (+) | 5,000.00 | - |
| Cash / Bank | Asset (-) | - | 5,000.00 |
| Deferred Grant Revenue | Liability (-) | 5,000.00 | - |
| Grant Revenue (Earned) | Revenue (+) | - | 5,000.00 |
💡 Accountant's Note
In NGO accounting, you often only 'earn' the revenue as you spend the money on the project. This double entry records the cost and simultaneously 'releases' the donor funds from the balance sheet to the income statement.
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