Gift in kind- How to show in books?

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Amit

Accountant

201 Points Posted on 04 July 2011

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)

U S Sharma

glidor@gmail.com

21670 Points Posted on 05 July 2011

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