Entry and carryforward of cash/chq gift in balancesheet
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
08 January 2014
Sir,
Kindly clarify whether money gifts (whether cash or thru chq.) given to the donee in a particular accounting year and shown as assets in the balancesheet of that a/c year are carried forward and shown as assets in the balancesheet(of the donee) of the successive accounting years also ? Carry forward of immovable assets is the rule but what about cash gifts.I am asking because cash gifts received in an accounting year can be spent in the same year then whats the use of showing it as an asset in the successive a/c years.
Please reply
Thanks
Kindly clarify whether money gifts (whether cash or thru chq.) given to the donee in a particular accounting year and shown as assets in the balancesheet of that a/c year are carried forward and shown as assets in the balancesheet(of the donee) of the successive accounting years also ? Carry forward of immovable assets is the rule but what about cash gifts.I am asking because cash gifts received in an accounting year can be spent in the same year then whats the use of showing it as an asset in the successive a/c years.
Please reply
Thanks
08 January 2014
Cash received as a gift remains cash only until it is spent.
.
As soon as cash is spent, cash balance reduces accordingly. If you spend all the money, the balance reduces to Zero. So, in such a case you will not carry forward any asset as Cash.
.
.
As soon as cash is spent, cash balance reduces accordingly. If you spend all the money, the balance reduces to Zero. So, in such a case you will not carry forward any asset as Cash.
.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS on Consultancy- Non DTAA
- Depreciation of fixed assets- coop housing society in mumbai
- Reopen of assessment proceeding
- Rental income gst and it purpose
- Gift Received from nonblood relative
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- Experts need help
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- EPF FULL & FINAL RULES IN 2026
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
