Hi,
I have an accounting question. Since I am beginner in accountancy I need some help.
I have the following situation:
A person books flights and pays for them to attend a meeting of an organisation. According to the organisation's rules he is entitled to be reimbursed. Therefore he would normally fill in the reimbursement forms and eventually get reimbursed. However in this case the person decides that he will "donate" the cost of the flights to the organisation i.e. he no longer wants to be reimbursed. Therefore the organisation has received a donation but cash has not actually changed hands. How would you enter this into a financial statement i.e. balance sheet etc.
In this case tax doesn't need to be involved. However it would be useful if this does actually appear as a donation on the profit-loss statement instead of a debt cancellation.
Thanks
Timo