Accounting entry

Plz tell me what will be the accounting entry in my and the person giving me money for not carring any business / activity in both book......
Replies (7)

In such a case generally we are trated as unsecured creditor and debtors.

 

So,

01. In the Books of you, accouting entry would be :

Cash a/c                                                                                  Dr

    To Xyz a/c (Name of person who giving you money)

(Being unsecured loan taken from Mr Xyz)

 

02.  In the Books of other Party , accouting entry would be :

Your Name a/c                                                                        Dr

    To Cash a/c

(Being unsecured loan given to ABC.)

I hope I understood your question and answer it..

 

 

In such a case generally we are trated as unsecured credir and debtors.

So,

01. In the Books of you, accouting entry would be :

Cash a/c                                                                                  Dr

    To Xyz a/c (Name of person who giving you money)

(Being unsecured loan taken from Mr Xyz)

 

02.  In the Books of other Party , accouting entry would be :

Your Name a/c                                                                        Dr

    To Cash a/c

(Being unsecured loan given to ABC.)

I hope I understood your question and answer it..

 

 

How can we treat it as a loan this was the full and final settelment for me .... I am not going to receive any peny from that person in future we made agreement for not carring that business by me.....

I think this is a non-compete fees. 

The recepient of the non-compete fees will have to book it as business income or income from other sources. And the person paying it may treat it as expense deductible.

Wait for more replies.

Yes ur right but what entry to pass in book...

oopss ! Sorry I was not understand your question. Now I got your point.

01. If this amount is not a big (Materility concept) then you can directly charge to your P & L Income as Misc. Income.

 

Entry would be..

Cash a/c              Dr

   To Misc Income

 

02. You can also treat this income as settlement income or Remuneration income or as Good will or Royalty. These all are oprions available for you. This looks for comfortable and particular then only Misc. Income.

 

Dear Govind

The income should be spread over period treated as capital receipt in your books of a/c and

capital expenses in giver's books of a/c.

AS 9 "Revenue Recognition" applies.

Period can be minimum 3 to 5 years.

thanks

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
02 November 2026
Audit Executive

SRJP & Co LLP

Kochi

CA Inter

View Details
Company
ARTICLESHIP 25 October 2026
Article Intern (CA Articleship)

Arpan Bohra & Co

Hyderabad

CA Inter

View Details
Company
21 October 2026
CA INTER/ BCOM WITH EXPERIENCE

CA S KUMAR GUPTA & CO

Amritsar

CA Inter

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details