Entry for receipt of stock as finished goods

I think so the entry will be

Stock A/c        Dr.      XX

 To Donation A/c                            XX

(Being Stock received as Donation)

Regards,

Devendra

In accounting softwares i don't think you will be able to post any entry directly to stock a/c.   You have route them only through purchases or stock transfers.

The query can be solved as below:

1) Purchase A/c.                      Dr.

     To Donor  A/c.

     (with value of donation or cost of goods at market rate)

2)Donor A/c                               Dr.

    To Donation A/c       

I think Devendra is correct.

donation a/c is created in in indirect income group.

your second qestion answer is stoct is visible in stock and closing stock.

if you are enterd the stock is how to consumed in tally by passing an journal it will dis appier in closing stock

Entry will be

stock a/c dr

To donation a/c

& keep the head of stock under head of purchase ur problem will be solved

As in return of the donation you are neither creating any liability nor paying any amount in return of that.So We can not pass any puchase entry for it. We can pass a Journal Entry for it. In passing the JV link the same to the stock which ur getting as donation by creding to donation under Miscellaneous Income under Profit and Loss Account.

Hi friends my query is that, if you include the donations (stock items) in the stock , how will you compute the value of closing stock as per AS-2 ? Please Reply ?

Please ready my reply above.   That takes care of all your doubts.

I think for receiving goods as Donation no entry will be passed because in Accounting every entry must be in monetary terms and goods received as donation are free of cost hence no entry will be passed and only quantity must be increased by entering in stock register.

For receipt of stock we can pass entry in stock journal and donation we can account in receipts by transfering it to p&L a/c... then stock wont appear twice.... Kindly reply if u solved it before

Valuing finished goods as per AS-2 only quantity is increased while no amount will added

for example previously 1000 items @ rs 12 per item total value=12000.

Goods received as donation 100 items free of cost. value=nil

Hence totals items =1100 & value=12000 applying weighted average cost formulae 12000/1100=10.90 per item.

This treatment is similar Bonus Shares valuation as per AS-13 Valuation of Investments. where only no. of shares is increased and no amount will be added

I NEED HELP FOR PURCHASE ENTRY  REGARDING COAL PURCAHSE

1) WE MAKE PAYMENT IN ADVANCE

2) THEN HE RELEASE DELIVERY ODER.

3) THEN WE LIFT THE MATERIAL FROM COLIERY  WITH CHALLAN

4) LAST WE GET BILL FROM HEAD OFFICE