Trust - Accounts

Kumar (Accountant/HR) (72 Points)

02 March 2010

Dear Chartered Accountants,

Please help me out to understand in detail about the maintenance of a Trust Account.

What are all the Books of Accounts need to be maintain?

How the entries should be in books?

Etc....

Thanks & Regards// Kumar

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MAGESH.G (STUDENT) (195 Points)
Replied 04 March 2010

Boss, a trust has to maintain accounts mainly for the purpose of Income tax exemptions. The major ones are:

1. Cash/Bank Book

2. Donations A/c(Reciept & Utilization)

3. Government Grants related A/cs (if any), Memmbership fees, Subscripttions

4. Payable , Recievable ledgers

5. Fixed Assets

etc

BAsically the books are almost same but the trust may change the accounting treatment for particular accounts.

Ex; Donations collected (for mid day meals) may be recognised as income over the period of 10 months(Schools remain open)

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