Accounting entry of Gift deed

A/c entries 2056 views 2 replies

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?

 

Replies (2)

Proprietors Capital a/c Debit  4,00,000/-

 

Loan to Father (Asset side) credit  4,00,000/-

 

correct me if wrong

Ankur JAin is correct

 


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