16 February 2024
Sir, In my case Mrs.M got a land as settlement from her father. Then later she gifted 1/3rd of it to her own brother and the remaining was gifted to her 2 sons in equal ratio. Is it correct to post below entries in the book of Mrs.M Land 1 A/c___ Dr xxx To Mrs.M's Capital A/c xxx (Being land which is rec from her father) Land 2 ___ Dr xxx Land 3 ___ Dr xxx Land 4 ___ Dr xxx To Land 1 xxx (Being land 1 has been divided into land 2, 3 and 4) M's Capital A/c___Dr xxx To Land 2 xxx To Land 3 xxx To Land 4 xxx (Being gifting of land to brother and her 2 sons) Is it correct to reflect in capital account for gift rec.? If it is wrong, Kindly mention the entry for my reference.
CAclubindia
