Dear sir,
as you replied on my question in (CA Club) that - Rs.100,000/- gift received from my father in cash, pass journal entries.
your reply was -
In fathers book---
Capital a/c Dr.
To Cash or Bank
In my book --
Cash or Bank Dr.
To Capital A/c
I don't agree to ur reply. Becoz I am receiving gift from my father
1. why capital a/c will effect?
2. You wrote cash or bank whether it is cleared in question that I am getting gift in Cash.
Thanks
Deepak
Dear sir,
as you replied on my question in (CA Club) that - Rs.100,000/- gift received from my father in cash, pass journal entries.
your reply was -
In fathers book---
Capital a/c Dr.
To Cash or Bank
In my book --
Cash or Bank Dr.
To Capital A/c
I don't agree to ur reply. Becoz I am receiving gift from my father
1. why capital a/c will effect?
2. You wrote cash or bank whether it is cleared in question that I am getting gift in Cash.
Thanks
Deepak
hi deepak.
my view to ur problem is as follows;
(1) In accounts, we study that business and businessman are two different entities. so for the above problem to account for, we first really have to find that whether at all the father and the son wants to show the exchange of the gifts in their respective books. One's decision to show the same will not effect the other's to do the same too.
(2) Hence, first of all both needn't have to show this transaction at all coz' it is not related to the business. it is a personal exchange of gifts b/w father and son and the accounts of both the firms needn't account it.
(3) also if at all the transaction hve to be shown in the accounts, then only son need to show it by crediting the amt. in his capital account and showing in the books as the additional capital brought in and at the same time, the father, if wants to show the trans., may do so by taking it as a drawing.
CAclubindia
