How to account fixed assets which were donated to a trusts..

If any fixed assets were donated/ dropped in hundi of a temples, how they must be accounted and taken into balance sheet as per AS.

Replies (8)

Entry would be:-

Donation Dr...............xxx

       To Fixed Assets Account........xxx

Above entry would be made with the amount equal to Written Down Value of the fixed assets appearing in the books of accounts.

 

Are you aksing for the balance sheet of donors or for the balance sheet of the temple trus.

 

I am asking how to account(recognise as per standards) the fixed assets(eg: land & buildings) in balance sheet of Temple (trust) where the donors are anaonymous persons and the value of such properties are not known......

 

The devotees simply drop the property documents in Hundies of temples, some are converted in Temple name and others are not converted...How should we have to account these properties where there is no cash outflow from us...

 

I also prefer to pass an entry like: Fixed Assets A/c Dr.

                                                              To Capital Reserve A/c

 

Please suggest me whether this entry is correct

 

@ Vishnu priya...there is an AS-12 of Govt grants....from that view u can pass that entry and the following to be noted

when it is received at free of cost then show that partciular asset at nominal value(say 100)

Originally posted by : Prashanth

 

@ Vishnu priya...there is an AS-12 of Govt grants....from that view u can pass that entry and the following to be noted

when it is received at free of cost then show that partciular asset at nominal value(say 100)

 

 

These are properties which are donated but they are not of grant nature so in my view AS-12 is not applicable here....

No,

once refer the acounting standard once it aslo say where any asset is given at free of cost the same should br recorded at nominal value....correct me if im wrong

@ Vishu Priya

Your entry is correct as far as your concern. However, we can easily find holder of such property, if property document is with your hand. You can get a EC Register Number once you file a copy requisiation of that area municipality.

Or else, find any property valuer to value of such property. (the authorized government Property Valuer)

So the entry is Debit Fixed Assets and Credit Anonymous Donation received account for the abvoe computed value.

temple can find the achual value of the property by any registered valuer or they can record as the stamp value of property as per the property documents,

and then record that value with anonymous donation a/c.

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