14 June 2010
A charitable trust received a building as donation. Since no amount is received for building fund, a building is received as donation,How it is accountable?
15 June 2010
It is normal for Charitable Institutions like Societies, Trusts and Sec. 25 companies to receive donations and voluntary contributions in cash or in kind. If it is received in cash, it should be accounted for in normal course after passing a cash receipt. If it is received in kind, such as a building, then you have to debit the building account and credit the capital fund account as the asset is set to increase the net capital of the Charitable Trust. The Trust may also maintain a separate receipt for donations in kind so that there will be source document.
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