Accounting for gift

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

07 July 2010 A person purchased a computer for Rs 30000. he was given a scrach card in which he won a Gold Coin worth Rs 5000.

What should be the accounting entries to be recorded in the books of the person.

Please suggest?

Akhil Agrawal

Akhil Agrawal (Expert)
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08 July 2010 In my View if its a case of an individual then Computer entry will be same as usual. For the gold coin it should be rooted through the Capital Account. being jewelery debited & capital credited

i want opinion if the same happens with a company?

CA.Pujah

CA.Pujah (Expert)
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08 July 2010 I believe though Gold Coin is obtained free of cost, it is an asset. So, it needs to be shown in books of account. It may be shown at a nominal value of Re.1.
Later if desired & agreed by owners, may be revalued to its FMV by creating a revaluation reserve, being a capital reserve

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Akhil Agrawal

Akhil Agrawal (Expert)
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08 July 2010 yes agreed with Expert