It could depend on the system you are using for the charity's bookkeeping. Do you use a dedicated software package, excel spreadsheets or pen and paper?
If you mean the double entry bookkeeping for it, it would be: Dr Bank £x Cr Gift Aid £x (I'd keep the Gift Aid in a separate nominal code/column - if you're doing it manually or on a spreadsheet)
Im treasurer of a small charity, i.e. a church with a very small membership. Therefore, in terms of bookkeeping I operate a very basic system which consists of several Excel pages.
My Cash Account provides for cash/cheque payments received (DR) and cash payments made and lodgements in the bank (CR). My Bank Account provides for lodgements in the bank (DR) and payments made on the bank current account (CR). Periodically, in order to detect possible errors I prepare a Cash and Bank Summary Account. At the end of the financial year if any adjustments are necessary I do this by the use of a Journal.
In terms of an automatic payment into the bank, this was not too difficult for me to figure out debit the Bank Account and credit the Gift Aid Recovery Scheme Account.
However, I wasnt too sure how to reflect this transaction in the Cash Account, in that no payment was physically received by cash or cheque and no lodgement was made from the Cash Account to the bank current account. Given this, total lodgements as per the Cash Account would not equal total lodgements as per the Bank Account. Obviously, on preparing the Cash and Bank Summary Account this would pose a problem.
In light of the further information given, could someone offer additional clarification?
