GST Practitioner & Accounts
15072 Points
Joined March 2014
J .E in the Books of Trust
When loan received by trust
1) Bank A/c Dr 100000/-
To unsecured loan A/c Cr 100000/-
( Being loan received by trust )
In the next year unsecured loan will be converted in to Donation so entry will be
2) Unsecured loan A/c Dr 100000/-
Donation A/c Cr 100000/-
( Unsecured loan converted in to non repayable Donation )
3) Then we transfer this donation amount to Income & Expenditure account as this donation is our Income . entry will be
Donation A/c Dr 100000/-
To Income & Expenditure A/c Cr 100000/-
( Donation as income transfer to Income & expenditure )
Note - if trust want to capitalize this amount then Capital fund account will be credited .