What Is Accumulated Fund?
An Accumulated Fund Holds Excess Money Received by a Non-Profit Organization (Npo). Similar to the Retained Earnings of a for-Profit Firm, the Accumulated Fund...
An accumulated fund holds excess money received by a non-profit organization (NPO). Similar to the retained earnings of a for-profit firm, the accumulated fund grows when revenues are greater than expenses and there is a budgetary surplus.
How is accumulated fund calculated?
The value of the accumulated funds can be calculated at any time by valuing the net assets (i.e. assets less liabilities) of the organization. The accumulated fund is the equivalent of the capital of a profit-making organization.
Where is accumulated fund is recorded?
Preparation of Balance Sheet for Non-Profit Organization
The assets of the organization are recorded on the Right side and liabilities on the Left side. The Non-profit organizations do not use the term Capital. Instead, General Fund or Accumulated Fund appears on the Balance Sheet.
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