Donations Accounting Entries

By Bank a/c 1,50,000₹ 

By Student 1 a/c 10000₹

.

.

.

By Student 15 a/c 10000₹

To Charity a/c 150,000₹

To Bank a/c 150,000₹

adjust tax and relief wherever necessary.

Receipt and payment entries have nothing to do with clearance from Bank. Such differences will form part of BRS.

@ CMA Poornima is my entry correct or wrong?

26.3.2020 pass entry
Bank A/c Dr 150000/-
To Donation Cr 150000/-
(Being donation received)

on 29/3/2020 pass entry
Student. A/c Dr 10000/-
To Bank. A/c Cr 10000/-
(Being payment of charity to student

likewise you have to 15 entries .

Now 29/3/2029 cheque rs 10000/ each (total 150000/-) -have been issued but not clear as on 31/3/32020 in Bank , while preparing bank reconciliation statement on 31/3/2020 ,in order to Tally your books of accounts bank balance , with bank statement on 31/3/2020 , you have to add back Rs 150000/- in your bank reconciliation statement because same balance has been reduced in your bank ledger after that it will Tally with Bank statement.

If you want to capitalise donation, You can show under Capital Fund , if not you can show income side of Income & Expenditure.

Originally posted by : yasaswi gomes
	@ CMA Poornima is my entry correct or wrong?

Perfect

We have developed a Tally Customisation for Trusts / NGOs.

It prepares Donation Receipt / Details of Donors & Donation in Form 10BD for Income Tax Compliances.

You can view Demo / Walkthrough Video @ https://youtu.be/jRETu-pFY08 .

You can also visit my blog post @ https://canirmalg.com/2023/03/24/generate-donation-receipt-and-form-10bd-tally-customisation-with-tdl/