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Settlement Deed of property

Vikash (G) (393 Points)

17 April 2024

sir a and b given settlement deed of property to c family members without any consideration value what would be the journal entry

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7 Replies

Nikhil Kaushik (Fellow CA) (86102 Points)
Replied 18 April 2024

transfer the book value to reserves/capital account.

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Vikash (G) (393 Points)
Replied 18 April 2024

Transfer the value of sale deed to c

sabyasachi mukherjee (27642 Points)
Replied 21 April 2024

The settlement deed of property is seperate.

Nikhil Kaushik (Fellow CA) (86102 Points)
Replied 21 April 2024

Vikash - that is why you need to transfer the asset to capital account. Because if you create an account for C and transfer to the asset to C's account, then it would create another asset in your balance sheet in name of C. That is not the purpose of the settlement deed. You are removing the asset from your balance sheet and the corresponding debit is on personal side. Hence, debit the capital account.