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Building Fund

Raina Sakhale (None) (25 Points)

07 July 2011

whenever a donation is received for a specific purpose, say, sports, we usually pass the following entries

Bank a/c Dr

To Sports Fund

When expenses are met for sports

Sports Expenses a/c dr

To Bank

Then to reduce the value of fund

Sports Fund a/c dr

to sports expenses

If we get a building fund, then what three entries will be passed to show when a 30,000 worth of building has been constructed from a donation of building rs 1,00,000???

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CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 07 July 2011

WHEN DONATION FOR BUILDING FUND IS RECEIVED

BANK AC- - - - - - -- - - - - - - - - -DR.

TO BUILDING FUND AC.

WHEN PAYMENT FOR BUILDING IS MADE

BLD. UNDER CONSTRUCTION AC -- - - - - - DR.

TO BANK AC.

(BEING EXP. FOR CONSTRUCTION MADE)

WHEN BUILDING IS COMPLETED

BUILDING AC - - -- - - - - - - - - - - - DR.

TO BUILDING UNDER CONSTRUCTION AC.

(BEING BLD. UNDER CONSTRUCTION TFD. TO BLD. AC.)

BUILDING FUND AC - - -- - - - - - -- - - - DR.

TO CAPITAL AC.

(BEING THE AMT. EQUAL TO BLD. CONSTRUCTION TFD, TO BLD. AC. TFD. TO CAPITAL FUND AC)

1 Like

Sagar Zankhariya (Audit Assist.) (278 Points)
Replied 08 July 2011

Future CA is true
	WHEN DONATION FOR BUILDING FUND IS RECEIVED BANK AC- - - - - - -- - - - - - - - - -DR. TO BUILDING FUND AC. WHEN PAYMENT FOR BUILDING IS MADE BLD. UNDER CONSTRUCTION AC -- - - - - - DR. TO BANK AC. (BEING EXP. FOR CONSTRUCTION MADE) WHEN BUILDING IS COMPLETED BUILDING AC - - -- - - - - - - - - - - - DR. TO BUILDING UNDER CONSTRUCTION AC. (BEING BLD. UNDER CONSTRUCTION TFD. TO BLD. AC.) BUILDING FUND AC - - -- - - - - - -- - - - DR. TO CAPITAL AC. (BEING THE AMT. EQUAL TO BLD. CONSTRUCTION TFD, TO BLD. AC. TFD. TO CAPITAL FUND AC)

Raina Sakhale (None) (25 Points)
Replied 08 July 2011

Thanks a lot!!

Prachi Bansal (3124 Points)
Replied 04 April 2021

What kind of donations can be shown in a balance sheet?

The Frizzy Kid (2 Points)
Replied 29 September 2021

Sir can u please tell me why are we transferrring building fund to capital fund and why are we not deducting expenses of building construction from building fund 🙏🙏🙏🙏

Please sir I m lacking in concepts🙏🙏