Dear All
please reply my question soonest, i am doing bookkeeping for charity centre and they get 4 payments on account of grant, now when making the year end accounts i-e 31 mar 2009, the last payment was not received and it came in june 09, so please advice what ledger entry should i make on 31 march 2009 to reflect this.
in the past the bookkeeper has done it this way,

Accounts /Receivables   Dr.
      Grants A/C         Cr.

should it not be
Accrued Income       Dr
        Grants           Cr.

hope to see replies soon.
ta

The previous bookkeeper is correct..

Dr debtors/accounts receivable
  Cr grants received

Why would you think it’s the other way around? In double entry book-keeping, you credit to increase income and debit to increase an asset.

So you want to increase the grants received (income) and increase the receivables/debtors (an asset), so credit the first and debit the second.

This is fairly basic book-keeping, following on from your previous thread, are you sure you’re competent to carry on this work unaided and unsupervised? And are you allowed to do this work unsupervised under the student rules and regulations that I posted a link to in the prvious thread? If you’re not, you face being struck off the ACCA register and that will be the end of your accountancy training. To my mind it’s not worth the risk.

I work for a charity (sorry my reply is late but it could help)

For charities the difference arises whether the grant/donation is a committed donation by the party offering the grant

If it is a committed donation, then ye DR accounts receivable
                          CR grants account

However if the grant is not a result of a committed donation, then you have to recognize it in the period it is received/realised. (prudence- this is income)

From your explanation I think it is a result of the former but check about it.

All the best