How to pass entry for received gift

You may pass the entry as follows: -

In the books of Mr. Xyz: -

1. If the amount is invested in the business then as follows

Bank A/c Dr.

        To Capital A/c

(Being gift received from Mr. Abc is invested in the business)

2. If the amount is not invested in the business then there will be no entry.

In the books of Mr. Abc: -

1. If the amount is gifted for the concerned business relationship then

Business Promotional Exp. A/c Dr.

        To bank A/c.

(Being amt paid towards .................)

2.    If the amount is gifted for the personal reasons then

Drawings A/c     Dr.

         To Bank A/c.

(Being amt paid towards .................)

(Note: - Headings can be altered suitably).

Gift in Kind in the books of receiver

Further, if you receive a gift in kind and the same is used in the business then you should do the fair value of that gift item and record the same by giving a credit to capital account.

Gift in Kind in the books of donor

In this case, the donor will credit the relevant asset 's carrying amount and take the second effect as loss in its income statement as if it is sold at zero value.

The entries in the case mentioned by you will be as follows:

1. In the books of XYZ

   a) Bank A/C Dr. 50000

        To Gift Received A/C 50000

   b) Gift received a/c Dr 50000

         To Profit and loss a/c  50000

2. In the books of ABC

   a) Miscellaneous Expenses/Business promotion Expenses A/C Dr 50000

              To Bank A/c                                                                                50000

   b)  Profit and loss a/c dr 50000

             to bank a/c                  50000

Disclaimer : The above entries are as per my opinion. There could be other views either conceptually or otherwise. The entries may be passed with suitable narration according to the situation and the names of the account heads should also also be considered keeping the actual situation in mind, which may be different from the account heads as shown above. No responsibility/accountability shall be taken by me for the entries passed above. Feel free to use your own analytical faculties of mind/discretion in either accepting/rejecting the journal entries and other incidental/related information.

Our firm is Propriotership, we buy one mobile phone to gift client, but mobile company raised bill in the name of client. how to pass entry in tally 

simply you can consider this as sales promotion exp

how to make entries regarding Transfer entry in the bank by Xyz and comes under which head as per accounting but is not a liability

There will be two entries, one will have the 

1. In the books of XYZ    a) Bank A/C Dr. 50000      

  To Gift Received A/C 50000    b) Gift received a/c Dr 50000        

  To Profit and loss a/c  50000 2. In the books of ABC

   a) Miscellaneous Expenses/Business promotion Expenses A/C   Dr 50000            

   To Bank A/c         50000  

b)  Profit and loss a/c

dr 50000              to bank a/c                  50000

 

1. Accounting Entry in the Books of Mr. XYZ:

Debit (Increase in Cash/Bank): Rs. 50,000 (This increases Mr. XYZ's cash or bank balance, depending on how the cheque is deposited.)

Credit (Gift Received): Rs. 50,000 (This represents the gift received from Mr. ABC. Gift received is usually categorized under income or sundry income in the books of the recipient. It's a non-operating income)

2. Accounting Entry in the Books of Mr. ABC:

Debit (Gift Expense/Charity): Rs. 50,000 (This represents the amount given as a gift, reducing Mr. ABC's equity or increasing his expenses, depending on the nature of the payment. Gift given can be categorized as an expense, specifically under charity or a decrease in equity if the payment is made from personal funds.)

Credit (Cash/Bank): Rs. 50,000 (This reduces Mr. ABC's cash or bank balance as he is making the payment through a cheque.)