Gift in kind- How to show in books?

684 views 2 replies

I received a gift in kind ( a two wheeler), being a personal effect, from a friend, then how to account for it in personal book of accounts.

1) Should the item be debited to to vehicle account and shown in balance sheet and the opposite credit entry be made to capital account?

2) is there any other way to pass entry?

3) Is it necessary to pass an entry for a gift of the nature of personal effect?

Thanks in advance to members. please careful study the above points and give a satisfactory answer clarifying the all the points

 

Replies (2)
Originally posted by : Amit

I received a gift in kind ( a two wheeler), being a personal effect, from a friend, then how to account for it in personal book of accounts.
1) Should the item be debited to to vehicle account and shown in balance sheet and the opposite credit entry be made to capital account?

- is it new from showroom or the old one?
2) is there any other way to pass entry?
3) Is it necessary to pass an entry for a gift of the nature of personal effect?
Thanks in advance to members. please careful study the above points and give a satisfactory answer clarifying the all the points
 

if new from showroom, that means friend has to show outgo of his capital, 

here you have to consider capital receipt and then drawings again as vehidles does not constitute asset in balance sheet of individuals, its effect

if its used one, then no need to make any entry.

Sir,

Thx for reply. But the matter is still not clear. Is is possible to clarify it further please?


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 12 March 2026
Customer Relationship Executive

TAXLET

Calicut

B.Com

View Details
Company
Featured 14 March 2026
Article Trainee

N N V Satish&co

Hyderabad

CA Inter

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details