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accounting tratment

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Trilok chand

Trilok chand (Querist)
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08 December 2009 Dear colleagues,
accounting treatment for gift recived by company.

CA CHINTAN AJMERA

CA CHINTAN AJMERA (Expert)
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08 December 2009 Depend on gift. If cHeque Received then bank a/c. dr to gift a/c or land & building receved then l & b acc dr to gift a/c.

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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08 December 2009 The situation asked in the question is odd one.

First of all; gift is given out of natural love and affection.

Comapny is an artificial person. How a person can have natural love with artificial person?

However; there may be donation received by a company which may be given by a person voluntarily. In that case also; generally it may be a Section 25 Company.

In that case the company will pass the following entry :

Bank A/c Debit
and/or
Asset A/c Debit

To Donation

CA Surendra Rakhecha
Surat

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