Vinita (CA final (clrd grp 1) CS B.com(hons)) (135 Points)
30 November 2016I have inherited some jewelry from my grandmother in the year 2001 when I was a minor. How should I disclose the same in my Balance sheet and at what valuation??
HIMANSHU GUPTA
(Sr. Accounts Executive)
(97 Points)
Replied 30 November 2016
Hitesh Khanna
(Accounting & Finance Taxation Company Law Audit )
(839 Points)
Replied 30 November 2016
CA VIRAL SANGHVI
(Finance head)
(681 Points)
Replied 01 December 2016
Hi,
Please pass the journal entry in following way
Investment account Dr...
To capital account
It is the gift which is exempted u/s 56 (ii) (vi) under income tax Act.
HIMANSHU GUPTA
(Sr. Accounts Executive)
(97 Points)
Replied 01 December 2016
CA VIRAL SANGHVI
(Finance head)
(681 Points)
Replied 01 December 2016
with market value of jewellery on the date of gift.
CA Pallav Singhania
(IT System Auditor)
(33262 Points)
Replied 01 December 2016
If jewellery is received from the relatives then the jewellery will be valued at the cost of the donor as per section 49 (1). Period of the holding of the previous owner will be added.
However, in Books it should be valued at the Market value.
CAclubindia
