The assessee has formed Private Non discretionary Trust. What accounting entry should be passed for receipt of settled amount and expenses incurred for Formation of trust.
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Trust formation Expenses
Replies (3)
What is turnover limit of VAT Audit in West Bengal? What is turnover limit of Income Tax, Service Tax and Central Excise Audit in West Bengal? Also in case of PF, P. Tax, WCT having any limit of trunover for Auditing??? Pl inform me at gautam_ch2 @ rediffmail.com
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Gautam Ch. Mandal ,Ph 9831707812
On receipt of settled amount you will debit to Bank account and Credit to Corpus Fund.
If the expenses of Formation are around 10/12 thousand you can write and set off as expenses during the first year of Trust.
Amount received in cash for formation of trust how to show in books
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