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[Music] hello everyone so in this session let us see what will be the accounting treatment for donations that are received by non-profit organization now donations when we say donations donations can be received for meeting capital expenditure or revenue expenditure now when we say capital expenditure it can also mean that they are received for specific purposes now if the donations are received for specific purposes then they will be accounted in that proper fund that is on the liability side of the balance sheet now if they are for general purpose but capital in nature then it will be accounted in the capital fund or accumulated fund now if the donations are received for revenue expenditure for meeting revenue expenditure then it is accounted in the income and expenditure account so we need to find out what is the purpose of donation and accordingly we need to account for the donation that is received so it if it is for the specific purpose then in that specific fund account and if