New Enroll for RBI, PFRDA & NABARD Intro Class! April 18 at 9:15 PM

    Question

    Suppose an NPO receives a donation of $10,000 from a

    donor. The entry to record this transaction would be as follows?
    A Credit side Correct Answer Incorrect Answer
    B Debit side Correct Answer Incorrect Answer
    C Both side Correct Answer Incorrect Answer
    D None of the above Correct Answer Incorrect Answer

    Solution

    In accounting, credits represent the revenues or incomes earned by an organization, while debits represent the expenses or costs incurred by the organization. When a donation is received by an NPO, it is considered revenue or income for the organization, and therefore, it is recorded on the credit side of the income and expenditure account.

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