Question

what is the major difference in accounting for the general fund of a hospital and the unrestricted fund of other non-business, non profit organization?

Answer 1

General Fund Vs Unrestricted fund:

General fund is used to record all resource inflows and outflows that are not associated with special-purpose funds. The activities being paid for through the general fund constitute the core administrative and operational tasks of a hospital. Since the bulk of all resources flow through the general fund, it is most critical to maintain control over the expenditures from it.

Its supposed to be used nly for hospital expenses and no personal expenses are born frm this fund.

Unrestricted funds are donations that the group may use for any purpose so long as it meets the aims and objectives of the group outlined in their governing document. It can be used upon the discreation of the fund managers.