[Question] Non profits

[Neilsp1]

hello all, I am not sure on how to ask the question I have, but in its simplist form here goes:

"How do you bring in assets for a NPO, do you simply debit the asset and credit Accumulated loss / surplus?"

Or is there another option to Credit.

Thanks in advance.
Neil

[EAB]

How did the asset get into the NPO? You will debit the asset and need an account to credit, this you will get from the way the asset was introduced

Normally you do not put entries to Accumulated loss / surplus, only a very small number of exeptions. All entries needs to flow from income statement to the Accumulated loss / surplus account.

[Dave A]

To expand on Werner's post -

If it was a donation, you would credit an income account (probably called Donations Received).
If the NPO bought it with a payment from its bank account, you would credit the Bank Account.

[Neilsp1]

To expand on Werner's post -

If it was a donation, you would credit an income account (probably called Donations Received).
If the NPO bought it with a payment from its bank account, you would credit the Bank Account.

Hi guys thanks for the advise, I will firstly verify with the NPO to check past Financials