paid charity expenses
Answers
Charity generally refers to the voluntary giving of help, typically in the form of money or goods to those in need. Goods given as free samples are however a way of advertising. ... Instead, they are accounted for as expenses, simply because, in this case, the outflow of goods happen without any consideration.
Answer:
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Explanation:
What will be the journal entry for goods or cash given as charity?
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15 Answers

Shreevidya Narayanan, Pursuing CA and CS
Answered 2 years ago
When cash is given for charity then journal entry will be
Charity a/c …….Dr
To Cash a/c
(Cash donated for charity)
Rationale
Charity is an expense and increase in expense is debited and cash is an asset. Here it is an outflow of cash and hence it is credited.
When goods are given as charity
Charity a/c …….Dr
To Purchase a/c
(Goods given as charity)
Rationale
The logic for charity remains the same and since purchase is also a real a/c so decrease in asset is credited.