Non-Profit

Conditional Grant (Refundable Advance)

Recording a grant that has a 'barrier' or condition that must be met before revenue can be recognized.

Account NameTypeDebit ($)Credit ($)
CashAsset (+)20,000.00-
Refundable Advance (Grant)Liability (+)-20,000.00

💡 Accountant's Note

If a grant says 'You only keep this if you vaccinate 1,000 children,' the money is a liability (Refundable Advance) until the work is done.

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