Gift received is recorded in which account

gift received is recorded in which account?? p&l or capital
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Quick Summary
This discussion explores the correct accounting treatment for gifts received. Participants debate whether such gifts should be recorded in the Profit and Loss (P&L) statement or directly in the Capital Account. The consensus leans towards crediting the Capital Account, reflecting that a gift is not a trading profit but an addition to the owner's equity.

Capital
Show it in proprietor capital account Add it to the capital account
Why ???

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