Donations shown under profit & loss a/c?

Hi, 

greetings for the day!

An instance organisation give donation to truest, what is the accounting treatment  and its shows under profit and loss a/c?

Thanks in advance.

Replies (6)

Donation A\c Dr.

   To Cash A\c or Bank A\c

Donation A/c Dr.

    To Cash/ Bank

(Being Amount Paid to ___________ on A/c of _________)

The donation amount will be shown on the debit side of the Profit & loss A/c. However while filing income tax Return the amount will be disallowed & the respective deduction have to be claimed u/s 80G.

 

The journal entries given by both the participants are right.  I am attaching a link wherein journal entries have been explained for your kind feedback.

https://www.youtube.com/user/jbsclasses

 

Donation A/c Dr. To Cash/ Bank (Being Amount Paid to ___________ on A/c of _________) The donation amount will be shown on the debit side of the Profit & loss A/c. However while filing income tax Return the amount will be disallowed & the respective deduction have to be claimed u/s 80G.

Read more at: /forum/donations-shown-under-profit-amp-loss-a-c--233126.asp#.UPZqiEw2CS8

Dear

We use to open an a/c group head as "Expenses Disallowed" so that at the time of finalisation Auditor need not do a seperate excise to find out the above. If allowed Certificate are available for "Exemption" it need notbe clasified under the above. Gift also come under the above

Does all donation qualify for the deduction u/s 80G?

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