Loan v/s corpus donation
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
19 March 2014
If an individual has given loan to trust and the trust is now unable to repay it, Individual has agreed to convert the loan to donation. is this can be made and what is the procedure?? Please answer this as early as possible.
19 March 2014
1. Yes it is permissible.
2. The trust has to obtain a letter from the individual expressing his consent to treat the loan as a donation.
3. The trust has to pass the entry:
Unsecured Loan A/c Dr
To Donation A/c
4. The trust should give a donation receipt to the individual.
2. The trust has to obtain a letter from the individual expressing his consent to treat the loan as a donation.
3. The trust has to pass the entry:
Unsecured Loan A/c Dr
To Donation A/c
4. The trust should give a donation receipt to the individual.
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