Accounting entry of Gift deed

Sandip Sinha (Accountant) (31 Points)

12 November 2009  

I am working in a sole proprietorship organisation. Last financial year my Proprietor gave Rs400000/- to his father and asked me to show this as unsecured loan. Accordingly I did it. But this month he made a gift deed saying that he has gifted that amount of Rs 4 lacs to his father.

What would be the accounting entries for this?