Question

Suppose an NPO receives a donation of $10,000 from a donor. The entry to record this transaction would be as follows?

Q: Answer-Suppose an NPO receives a donation of $10,000 from a donor. The entry to record this transaction wou...

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.