Capital Project Funds and Debt Service Fund (Journal Entries)

Is it a requirement that each significant capital project be financed and accounted for in the capital projects fund? Please explain.

If possible can you please give an example as well as reference where the source of data and information garnered was gained? I am having difficulty distinguishing the difference between how the two funds work and operate in a Governmental vs. Not-for-Profit Organization as well as how they are recorded in a journal entry. Any help would be of great appreciation. Thanks in advance!