Accounting for gift

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

07 July 2010 A person purchased a computer for Rs 30000. he was given a scrach card in which he won a Gold Coin worth Rs 5000.

What should be the accounting entries to be recorded in the books of the person.

Please suggest?

Akhil Agrawal

Akhil Agrawal (Expert)
Follow

08 July 2010 In my View if its a case of an individual then Computer entry will be same as usual. For the gold coin it should be rooted through the Capital Account. being jewelery debited & capital credited

i want opinion if the same happens with a company?

CA.Pujah

CA.Pujah (Expert)
Follow

08 July 2010 I believe though Gold Coin is obtained free of cost, it is an asset. So, it needs to be shown in books of account. It may be shown at a nominal value of Re.1.
Later if desired & agreed by owners, may be revalued to its FMV by creating a revaluation reserve, being a capital reserve

Akhil Agrawal

Akhil Agrawal (Expert)
Follow

08 July 2010 yes agreed with Expert

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Manjunath J

Rahul Kulkarni

Badhri Narayanan

RAVINDRA KUMAR

kesav

Subscribe Now

Accounting for gift

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA