whenever a donation is received for a specific purpose, say, sports, we usually pass the following entries
Bank a/c Dr
To Sports Fund
When expenses are met for sports
Sports Expenses a/c dr
To Bank
Then to reduce the value of fund
Sports Fund a/c dr
to sports expenses
If we get a building fund, then what three entries will be passed to show when a 30,000 worth of building has been constructed from a donation of building rs 1,00,000???
WHEN DONATION FOR BUILDING FUND IS RECEIVED
BANK AC- - - - - - -- - - - - - - - - -DR.
TO BUILDING FUND AC.
WHEN PAYMENT FOR BUILDING IS MADE
BLD. UNDER CONSTRUCTION AC -- - - - - - DR.
TO BANK AC.
(BEING EXP. FOR CONSTRUCTION MADE)
WHEN BUILDING IS COMPLETED
BUILDING AC - - -- - - - - - - - - - - - DR.
TO BUILDING UNDER CONSTRUCTION AC.
(BEING BLD. UNDER CONSTRUCTION TFD. TO BLD. AC.)
BUILDING FUND AC - - -- - - - - - -- - - - DR.
TO CAPITAL AC.
(BEING THE AMT. EQUAL TO BLD. CONSTRUCTION TFD, TO BLD. AC. TFD. TO CAPITAL FUND AC)
| Future CA is true | ||
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WHEN DONATION FOR BUILDING FUND IS RECEIVED BANK AC- - - - - - -- - - - - - - - - -DR. TO BUILDING FUND AC. WHEN PAYMENT FOR BUILDING IS MADE BLD. UNDER CONSTRUCTION AC -- - - - - - DR. TO BANK AC. (BEING EXP. FOR CONSTRUCTION MADE) WHEN BUILDING IS COMPLETED BUILDING AC - - -- - - - - - - - - - - - DR. TO BUILDING UNDER CONSTRUCTION AC. (BEING BLD. UNDER CONSTRUCTION TFD. TO BLD. AC.) BUILDING FUND AC - - -- - - - - - -- - - - DR. TO CAPITAL AC. (BEING THE AMT. EQUAL TO BLD. CONSTRUCTION TFD, TO BLD. AC. TFD. TO CAPITAL FUND AC) |
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Thanks a lot!!
What kind of donations can be shown in a balance sheet?
Sir can u please tell me why are we transferrring building fund to capital fund and why are we not deducting expenses of building construction from building fund 🙏🙏🙏🙏
Please sir I m lacking in concepts🙏🙏
Gupta Sachdeva & Co. Chartered Accountants
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