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Accounting head

GANESH KUMAR KASHYAP (Private Job) (206 Points)

26 May 2016

DEAR SIR,

OUR COMPANY MADE A BADA MANGAL BHANDARA OF RS. 30,000, WHAT IS THE LEDGER HEAD FOR THIS?

REGARDS,

GANESH KUMAR

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5 Replies

anonymous (student) (750 Points)
Replied 26 May 2016

what's the expense...? didn't get you

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Manish Jain (Chartered Accountant) (119 Points)
Replied 27 May 2016

'Donations' seem to be appropriate accounting head in such case. More specifically 'Donations to temples/religious activities'.

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 28 May 2016

Hello,

Peripheral expenses Or Donation Expenses

MUKUL YADAV (Accountant) (21 Points)
Replied 29 May 2016

Donation Expenses kyu? Business Promotion Exp. kyu nahi.

Manish Jain (Chartered Accountant) (119 Points)
Replied 30 May 2016

@ Mukul Yadav, generally when you make donations to temple, the donations are anonymous. Even if it's not anonymous, the name of the doner is not printed on some hoarding. In such cases, it can not be considered as Business Promotion Expenses.

However, if the nature of donations is such that there is a promotion of the business of the organization, it should surely be treated as Business Promotion Expenses. But for this, a proper evaluation of the nature of transaction and the benefits arising from such donation is necessary.