Amit (Accountant) (261 Points)
07 July 2011I received a two wheeler as gift.
Can I write entry in my personal books like below?
Credit: GIFT INCOME ACCOUNT (will reflect in Profit and loss account)
Debit : Two wheeler vehicle purchase expenses (will reflect in Profit and loss account)
Pl. give your comments
Balaji
(Knowledge Seeker)
(317 Points)
Replied 07 July 2011
While crediting "Gifts Received A/c" under P&L is fine,the 2-Wheeler would be an asset henceforth owned by you and would have to be reflected on the Assets side of Balance-Sheet,i.e.,the 2-Wheeler would have to be debited to "Personal Assets" and reflected in the B/s.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 08 July 2011
in capital account such amount would be capital receipt as gift and would get added in assets as two wheeler.
@*CS Siddharth Bumb. *
(B.Com, CA Final, CS )
(5270 Points)
Replied 08 July 2011
| Originally posted by : Balaji | ||
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While crediting "Gifts Received A/c" under P&L is fine,the 2-Wheeler would be an asset henceforth owned by you and would have to be reflected on the Assets side of Balance-Sheet,i.e.,the 2-Wheeler would have to be debited to "Personal Assets" and reflected in the B/s. |
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and if you have received gift from re;latives then trf it to capital account because at last it is exempt...
Amit
(Accountant)
(261 Points)
Replied 08 July 2011
Is it possible to treat the two wheeler buying as drawing? Two wheeler for personal use in personal name not being a capital asset, is it necessary to show as asset in balance sheet?
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 08 July 2011
| Originally posted by : Amit | ||
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Is it possible to treat the two wheeler buying as drawing? Two wheeler for personal use in personal name not being a capital asset, is it necessary to show as asset in balance sheet? |
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for individuals its effect, and need not to be put in balance sheet, but other than individual its asset for business.
Amit
(Accountant)
(261 Points)
Replied 08 July 2011
Sharmasir, Thank you very much. Now, the matter is crystal clear to me. Thanks again
CAclubindia
