Hi . I have a doubt regarding trust accounts.
Suppose a trust is established U/s10(23C). It carries on welfare activities for the below poverty line people.In order to mobilise donations the trust members have approached an advertising agency and the said agency promised it would be filming a 30 second advertisement of the trust at all the cinema theatres free of cost.My queries -
1. In the books of trust, does this need to treated in any manner.If yes then pl provide the accounting entries.
2. In the books of advertising agency, does the expenditure incurred for filming the advertisment and displaying it in theatres be considered as donation for income tax purposes and what is the possible accounting entry in the books.
Pl refer to accounting standards as far as possible with respect to accounting entries.
CAclubindia
