On Mon, 2 Aug 2021, Stan Brown wrote:
If you're donating items that have no value on your books, I'm not sure I would call that a "donation" in accounting terms. You could keep a record by entering a transaction that would have only one split, with Account = your charity account and Debit and Credit both = 0.
Stan, Non-cash donations are tax deductible; for example, milage and fuel while delivering Meals on Wheels to shut-ins, books to the county library, and items given to Goodwill. For those of us who are sole members of an LLC the company's net profits roll over to our personal accounts so both business and personal donations (cash and non-cash) are reported on my personal tax reports. For years I've sent my accountant the proof of non-cash donations separate from the business and personal financial reports for tax preparation. I've decided now to record these in my personal books so they show up in the year's balance sheet and income statement.
If the item does have significant value but for some reason you never entered them in your books, you would create one or more asset accounts for them. Then you'd make two transactions for each item: (1) Debit: asset account Credit: Equity (I think this is a case for making a direct credit to the main equity account, essentially a correcting item, because the item is not new income but something that you've had all along but just not in your books.) (2) Debit: Expenses:Charity Credit: asset account
I'll look closely at this. It makes sense and allows me to think about it until I see something from my accountant. Thanks for the idea, Rich _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
