Finance Manager
312 Points
Joined October 2009
donations received are always revenue receipts unless otherwise agreed...( for example...corpus )
donations in kind shall be accounted at fair value ( receipt and expenditure....unless otherwise agreed....there is no legal provision..nor are there accounting standards because none of them are applicable to NPOs )
considering income tax provisions....revenue accounted on fair value eg 10 gold coins @ 20000...
there is an exemption of 15 % without underlying conditions on gross donations.....that would be rs. 30000......you can deduct the amount you expended ie 200000 ( value of gold coins from the remaining ) that brings a loss of rs 30000.
Note : answer based on the hint that it is a charitable organization