First of all, its not illegal, because kidney is donated not sold. Entry will not be passed because there is no monetary value of this kidney. Hospital, even if uses this kidney for some patient, cannot charge any money for kidney because it was a donation.
Journal Entry
Page no : 2
AJAY KUMAR JAIN
(SERVICE)
(101 Points)
Replied 27 July 2010
DONATE OF KIDNEY IS NOT PART OF BUSINESS SO NO ENTERY IN BOOKS
Aditya
(Final student)
(92 Points)
Replied 27 July 2010
Kannan,
There is no journal entry for this transation:-
1) When the Kidney is being donated the record will be in the Hospital Manangement software(Generally Known as HIMS)/register to record such type of transaction. Same as Blood Bank, where the blood stock is maintained and not in the books of accounts as the value cannot be measured in monetary terms.
2) All Hospitals generally have packages for such treatments, like wise Kidney transplantation will have a package of its own.
3) When the Kidney is used to a patient the package amount itself will be charged and considered as In-Patient Income.
Hence, in any case there is no sale/purchase of kidney in the books of accounts.
One should distinguish between Organ Trading and Organ Donation. Organs are donated (Eg: Liver, Kidney, Eyes. apart from organ Blood Donation), therefore the question of illegal transaction does not arise.
shyam sundar
(Article Assisstant)
(183 Points)
Replied 27 July 2010
as far as the purview of accounts is concerned if any payment made for the donating the kidney then it will be entered in books of accounts, or else it wont be.
The hospital may have donor register of receiving kidneys which are necessary for book keeping and as per regulation if any given by medical council of india. it may be just like a stock register of any stroes.
R.RAMESH NAYAK
(ASST. MANAGER)
(79 Points)
Replied 27 July 2010
YOU CAN TAKE IT HAS A STOCK @ A FACE VALUE OF 1 RUPEE.
DR KIDNEY A/C
CR DONAR / INDIVIDUAL (UNDER THE GROUP HEAD PURCHASE)
Faiz Ahmed
( Article Trainee)
(1731 Points)
Replied 29 July 2010
| Originally posted by : Aditya | ||
 |
Kannan, There is no journal entry for this transation:- 1) When the Kidney is being donated the record will be in the Hospital Manangement software(Generally Known as HIMS)/register to record such type of transaction. Same as Blood Bank, where the blood stock is maintained and not in the books of accounts as the value cannot be measured in monetary terms. 2) All Hospitals generally have packages for such treatments, like wise Kidney transplantation will have a package of its own. 3) When the Kidney is used to a patient the package amount itself will be charged and considered as In-Patient Income. Hence, in any case there is no sale/purchase of kidney in the books of accounts. One should distinguish between Organ Trading and Organ Donation. Organs are donated (Eg: Liver, Kidney, Eyes. apart from organ Blood Donation), therefore the question of illegal transaction does not arise. |
 |
Excellent Explanation.
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