Some NGO has to book some expense which a Donor is ready to sponsor.
But the Donor would pay only in the last month of this year.
What should be the accounting treatment to the Expense entry now?
Book the expense
Expense A/c Dr
To Sundry creditors A/c
( Booking of an expense , Invoice no and date )
when you pay expense
Sundry creditors A/c Dr
To Bank. A/c. Cr
( payment of expense booked earlier
write cheque no etc .
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