Land gifted to childrens

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This query is : Resolved

ANIL SHARMA (Querist)

22 March 2015 One of my clients had purchased pieces of land in his name and the amount for the purchase of such pieces of land was taken as loan from his son, and amount was shown as loans receieved and receivable in the respective books of accounts both are dealing in business of trading in sale and purchase of land. now the client has made a gift deed for all these pieces of land with zero consideration to his son. in such a case how do we deal with the accounting entries and what happens with the loans shown in both the books. what entries need to he passed. i have on so many occasions asked for queries but no reply kindly reply on this occassion

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

22 March 2015 1) When the land is gifted pass entries to effect the transfer of land.
2) Loans in both the books remain as it is unless it is settled.

ANIL SHARMA

ANIL SHARMA (Querist)

22 March 2015 SIR PLEASE ALSO GIVE ME JOURNAL ENTRIES IN BOTH THE BOOKS OF ACCOUNTS

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

23 March 2015 Father's books.
Capital ac Dr
To land ac

Son's books.
Land ac Dr
To capital ac

ANIL SHARMA

ANIL SHARMA (Querist)

23 March 2015 THANKS AND SO VERY KIND OF U

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