Donation received in kind to a temple
saju sathyadevan
(Querist) 31 October 2011
This query is : Resolved
Dear Sir,
I want to know, How to make entries in the books of accounts, if a person donates some valuable item to the temple as the same is an asset of the temple.
Also, if a temple is being constructed with some materials donated by the devotees and some purchased out of the amount of the building fund of the temple, then how to show the full/real value of the temple in the balance sheet.
Sankaranarayanan
(Expert) 31 October 2011
as simple as you given receipt to the concern party name and full address, and add that item to the asset of the temple, if any one given such brick and stone and cement then you can take it as receipt and payment method.
prabhakar singh
(Expert) 31 October 2011
ALTHOUGH MY LD. FRIEND HAS ENTERTAINED YOUR QUERY my point is do you expect us to be accountants or lawyers??As lawyers our business may be to check if entries are properly made or not but before entries are not made ,the topic gets concerned with CAs ,so it would be better to put this query in expert section of Caclubindia where after you can seek confirmation from us.so please adopt the correct procedure.
prabhakar singh
(Expert) 31 October 2011
ANY WAY THERE is only one entry in case of donations in kind while there are two entries in case of donations in cash.
a]as the rule says Dr. what comes in Cr. what goes out!
Then for donations in kind should be entered as:
bricks/cement etc......Dr.
To xyz...............
(donation in kind received
from xyz of value)
However for donations received in cash should be entered as:
Cash a/c ............Dr.
To xyz ...........
(donation in cash received
from xyz)
Then again when any cash would be expended
say in buying cement,then entry would be passed as:
Cement a/c ........Dr.
To cash.............
(say 20 bags cement @300/=
purchased in cash)
The basis of making entries are 03:
1]Dr. the reciever and Cr. the giver.
2]Dr. what comes in Cr. what goes out.
3]Dr.the losses and expenditures and Cr. the profit and income.
Nothing beyond it is accounting.
