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?
What should be the accounting entries to be recorded in the books of the person.
Please suggest?
Akhil Agrawal
(Expert)
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?
i want opinion if the same happens with a company?
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
Later if desired & agreed by owners, may be revalued to its FMV by creating a revaluation reserve, being a capital reserve
Akhil Agrawal
(Expert)
08 July 2010
yes agreed with Expert
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