Why is interest on general fund investments shown in income and expenditure account rather then adding it with the - Accountancy - Accounting for Not-for-Profit Organisation

Question

Why is interest on general fund investments shown in
income and expenditure account ?rather then adding it with the
general fund on the liabilities side of the balance
sheet

Saurabh Mehta · Accepted Answer

Interest on General Fund Investments is usually added to the
General Fund on the Liabilities side of the Balance Sheet However,
if there is no General Fund is not given (or appears on the
Liabilities side), then such interest would be shown on the credit
side (Income side) of the Income and Expenditure Account

Why is interest on general fund investments shown in income and expenditure account ?rather then adding it with the general fund on the liabilities side of the balance sheet .