accounting tratment
This query is : Resolved
Trilok chand
(Querist)
08 December 2009
Dear colleagues,
accounting treatment for gift recived by company.
accounting treatment for gift recived by company.
CA CHINTAN AJMERA
(Expert)
08 December 2009
Depend on gift. If cHeque Received then bank a/c. dr to gift a/c or land & building receved then l & b acc dr to gift a/c.
08 December 2009
The situation asked in the question is odd one.
First of all; gift is given out of natural love and affection.
Comapny is an artificial person. How a person can have natural love with artificial person?
However; there may be donation received by a company which may be given by a person voluntarily. In that case also; generally it may be a Section 25 Company.
In that case the company will pass the following entry :
Bank A/c Debit
and/or
Asset A/c Debit
To Donation
CA Surendra Rakhecha
Surat
First of all; gift is given out of natural love and affection.
Comapny is an artificial person. How a person can have natural love with artificial person?
However; there may be donation received by a company which may be given by a person voluntarily. In that case also; generally it may be a Section 25 Company.
In that case the company will pass the following entry :
Bank A/c Debit
and/or
Asset A/c Debit
To Donation
CA Surendra Rakhecha
Surat
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