Gift in kind- How to show in books?

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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?


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