Festive Savings Are Here. Get 10% OFF on All CCI Pro Plans. Subscribe Now!

Accounting head for donation

Save Share

This query is : Resolved

Quick Summary

Discussion explains donation accounting in a partnership firm. If firm claims deduction under section 80G, record as donation expense. If partner claims deduction personally, treat it as drawings in books.

Querist : Anonymous

Querist : Anonymous (Querist)

28 December 2011 we are partnership firm, and one of the partner had given donation to aids cure center pls tell me under which head should i put donation, one of the accountant is of view that it will come under indirect expenses but i knw its wrong, is it drawings, pls let me knw the proper group and heading for ledger

thanks

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)

28 December 2011 If the firm wants to claim deduction of this donation under Section 80G, then treat it as an expense and charge to Donation A/c.

This donation will be disallowed while computing business income and 50% of the donation will be allowed as deduction u/s 80G.

If, however, the partner wants to claim the deduction u/s 80G, then charge it to Drawings A/c.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now