Question

Goods donated rupees 4000 journalise entry

Answer 1

Answer:

Debit Credit

Charity Ac dr 4000 ----

To purchase ac ---- 4000

Explanation:

Goods given as charity are products given away by a business for charitable purposes.

The goods are donated to the charity free of charge and therefore do not have a sales value and as such cannot be recorded in the accounting records under the heading of sales.