Donation sales

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This discussion clarifies how to account for goods sold as donations. It explains that donations are treated as business expenses and suggests creating a sales invoice to the recipient organisation, followed by a journal voucher. The advice confirms there's no set limit for donation sales and touches upon the possibility of claiming Section 80G benefits.

Madhu M

Madhu M (Querist)
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14 August 2020 Dear sir

If i sale Goods As donation and , what would be the sale entry ??

What is the limit for donation sales ??if cash or Bank ??

Please suggest me

Thanks in Advance

Madhu

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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15 August 2020 Donation is an expense for the business organisation. You can create the sales invoice in the name of organisation to which it is being donated and later create a Journal Voucher Debiting Donation Expense and Crediting the said organisation.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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15 August 2020 There is no limit set for donation....

Madhu M

Madhu M (Querist)
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15 August 2020 Thanks you very much sir

Madhu M

Madhu M (Querist)
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15 August 2020 Sir,
That donation sale can claim section 80G ????

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