Check out some similar questions!

chasewoogie · Sep 18, 2009, 10:14 PM

How do I treat the treatment of a Plant & Machinery (fixed asset) donated to our company. What acounts do I debit and credit for this? What value do I reflect in the books of account since we did not pay for the asset with cash?

morgaine300 · Sep 19, 2009, 02:59 AM

You'd record at fair value first of all. Second, if the party who donated it has no claim on anything, that is, something that would cause it to be consider capital, then it's revenue. Or at least GAAP-wise it is.

chasewoogie · Sep 19, 2009, 05:06 AM

MORGAINE,

Thx. So what do we then debit & credit if the party who donated it has no claim on anything to be considered capital?

Will this do:

DR - FIXED ASSET (PLANT&MACHINERY)
CR - INCOME

Recorded at fair value of course

WILL THIS DO?

morgaine300 · Sep 19, 2009, 06:30 PM

Yes, that'll do. If it were me, I'd want to put a title on that income, just something like donations or contribution income or whatnot. Given that it's plant assets they've donated, I think it's probably material enough to not be lumped into some miscellaneous income account.

chasewoogie · Sep 20, 2009, 01:25 AM

Thx a lot morgaine. You have been most helpful.

I will like to have your email ad.

Mine is [email protected]. Drop me a line so I can have your email ad.

morgaine300 · Sep 20, 2009, 01:45 AM

I'm sorry -- I don't give out my email except under special circumstances. You can always PM me -- except you have to have a certain number of posts first. (Not sure how many.)

chasewoogie · Sep 20, 2009, 02:03 AM

You can always PM me -- What is that? PM? I didn't get that.

Ok Morgaine.

I guess we always meet here.

Thanks a lot.

morgaine300 · Sep 20, 2009, 02:42 AM

Private Message. If you click on my name there's a "send private message to..." on there. It's like email except that it's through the system here. They don't let newbies PM people, so that might not even show up under my name as a choice, I don't know. I also don't know how many posts it takes to be allowed to do it. If it's like 10, you're close.

If your purpose, however, is getting private help, please note that they have a rule that things which can be posted on one of the forums stay on the forums. The PM should be reserved for something that is private info (like if you needed to give me sensitive info in order to answer a question), or for general chit chat or comments, that type of thing. They try to promote keeping it public where everyone can see and share.