Yes, the unsecured loan from Mr. A (husband) can be transferred to Mrs. A’s (proprietor) capital account by way of gift through a journal entry. As it qualifies as a gift from a relative, it is exempt under Section 56(2)(x) of the Income-tax Act, 1961. This treatment is in line with standard accounting practices. Proper supporting documentation, such as a gift declaration, should be maintained to substantiate the transaction.