Journal Entry
This query is : Resolved
27 July 2010
Individual donated a kidney for an Hospital
In the books of the Hospital
Pass Journal Entries
In the books of the Hospital
Pass Journal Entries
27 July 2010
Dear Kannan,
Assuming kidney is classified as inventory in hospital books, it will follow the principal of "cost or market price whichever is lower". So no entry may be required, but it may be prudent to pass an entry like Dr. Stock in hand and Cr. Donation Income for a nominal value of Rs. 0.01.
The Item should be shown on inventory records as 1 quantity.
Assuming kidney is classified as inventory in hospital books, it will follow the principal of "cost or market price whichever is lower". So no entry may be required, but it may be prudent to pass an entry like Dr. Stock in hand and Cr. Donation Income for a nominal value of Rs. 0.01.
The Item should be shown on inventory records as 1 quantity.
Shudhanshu Agrawal
(Expert)
27 July 2010
Accounting entries are passed when any event can be converted into money. But Kidney can not be considered into money terms as sale or purchase of kidney is illegal. So according to me for this stock can be maintain but it shall not be recorded in the books of hospital.
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