Gift entry

One of our assessee has received the gift of Rs. 1 lac in individual accounts. He is also carrying proprietory business in seperate name. Books of accounts are also maintained seperately. He transferred the gift amount to business. what will be the acconting entries in individual and business books of account???
 

 

Replies (1)
In personal books of account Dr. Personal bank account Cr. Gift Received Dr. Investment in Business a/c Cr. Personal bank a/c Now for business books of accounts Dr. Business Bank Cr. Capital a/c Replace bank by cash if transactions through cash. Gift deed be ready to avoid further disputes. Regards Raj C Doshi

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