Non-Profit

Release of Net Assets from Restriction

Moving funds from restricted to unrestricted once the project conditions have been satisfied.

Account NameTypeDebit ($)Credit ($)
Net Assets Released (With Restrictions)Equity (-)2,000.00-
Net Assets Released (Without Restrictions)Equity (+)-2,000.00

💡 Accountant's Note

This 'reclassification' entry is unique to NGOs. It shows that the organization has fulfilled the donor's wishes and can now 'use' the revenue on the income statement.

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