Trust Finanacials

[Guest]

A trustee is donating his land to the trust for construction of educational institution. A gift deed was executed in this regard.

In the trust books, i am passing an entry 'Land A/c Debit and Credit Trustee Account' - Is this correct ?

[Guest]

Yes. it is correct.

[CAGOPALJI AGRAWAL]

From your query, it appears that you would treat trustee account as creditor or payables if it is so then you should pass the entry as under

 

Land Dr

Corpus fund Cr

AI Summary

Gift of land to trust requires recording as asset with corresponding trustee credit or corpus fund credit in accounts. Record the trustee's donated land by debiting the Land account and crediting the Trustee account when treated as a creditor; if treated as an irrevocable contribution to trust capital, credit the Corpus Fund instead.