JOURNAL ENTRY ON GIFT RECEIVED FROM MOTHER

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This discussion clarifies the correct accounting treatment for a proprietorship firm receiving land valued at Rs. 50 lakh as a gift from its owner's mother. The proposed journal entry debits Fixed Assets (Land) for Rs. 50 lakh and credits Capital Account for the same amount. It's confirmed that registration fees of Rs. 60,000 should be added to the land's value, making the total asset value Rs. 50,60,000.

bikash rai

bikash rai (Querist)
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03 September 2021 ABD (Proprietorship Firm) received Land as a gift Value Rs. 50 lakh &Reg Fess Rs. 60,000/- from mother .

Please suggest : Following Journal Entries is Correct or Not. If No, Please Reply with Correct entry

1. Land (Fixed Assets) -- A/C Dr. 50lakh
to Capital A/C Cr. 50lakh.

IN BALANCE SHEET:
ADD 50LAKH TO CAPITAL A/C IN LIABILITY SIDE AND ASSETS SIDE : 50LAKH SHOW SEPARATELY.

2. Registration fees will be added to Value Of Land or Not ?
plz reply as early as possible

THanking You
Bikash Rai