01-16-2005, 05:18 AM
You have misinterpreted a bit about the matter of Charity...
Charity recieved is shown in income statement as an income...it is concerned with financial statements...and will appear on the credit side of Profit and Loss Account...
Charity paid (donation) is not concerned with financial statement...it is not a business expense...its even not a drawing...but tax authorities gives some relief in tax calculations if the tax payer has given donations during the year...its treatment is the same like zakat...
Ace
Edited by - maani on Jan 16 2005 122248 AM
Charity recieved is shown in income statement as an income...it is concerned with financial statements...and will appear on the credit side of Profit and Loss Account...
Charity paid (donation) is not concerned with financial statement...it is not a business expense...its even not a drawing...but tax authorities gives some relief in tax calculations if the tax payer has given donations during the year...its treatment is the same like zakat...
Ace
Edited by - maani on Jan 16 2005 122248 AM
