Recognition of establishment of endowment fund: When an organisation receives income from an endowment fund established by some other organisation, then that income is like a donation for the receiving organisation. Establishment of endowment fund should be recorded by receiving organisation as a memorandum entry only. Memorandum entry means a short entry in which no debit credit amounts are involved. This is not a complete journal entry . : Journal entry required by Central to record establishment of the endowment.

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Chapter 19, Problem 19.2.12E

To determine

Concept Introduction:

Recognition of establishment of endowment fund:

When an organisation receives income from an endowment fund established by some other organisation, then that income is like a donation for the receiving organisation. Establishment of endowment fund should be recorded by receiving organisation as a memorandum entry only. Memorandum entry means a short entry in which no debit credit amounts are involved. This is not a complete journal entry.

:

Journal entry required by Central to record establishment of the endowment.

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