Forums

Donation paid. How to do bookkeeping entries?

Bookkeeping entry: You debit Donations and Credit bank account, if it is paid from a bank account.

You should set up a deduction donation Expense account I would do it with a default GST code of N-T, as there is no GST on donations and they are not reportable in BAS.

My personal preference is to have a Header Account for Donations and then sub-accounts for the actual entity that is being donated to, that way your Tax Accountant at year-end can easily check the deductible status.