Regarding Charitable trust

This query is : Resolved

Akbar Ali (Querist)
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06 September 2009 Dear sir

I want to know what will be the accounting treatment for the goods received in kind by charitable trust.
Kindly let me know the treatment.

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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06 September 2009 Check for which purpose the goods are used.

Suppose they have given cement, steel, or furniture then you have to capitalise the same.
Debit building and credit capital fund of the charity.

If the items are of revenue nature. suppose they have given books and the same has been ditributed to students then it will be of revenue nature.

Debit the books and credit contribution for books. eg.