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Capitalisation of property under loan and advance payment

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(Querist)
16 April 2015 Dear Sir,

We have purchased a property worth 1.34 cr wherein Rs.80 lakhs is loan from bank and remaining 54 lakhs is paid to the owner. LAP is recorded in the books as liability and part payment is kept as advance to the owner. what is the correct accounting entry for this?

regds:jaya
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vignesh

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vignesh (Expert)
17 April 2015 Greetings Jaya,
Incase u have already bought the property in your name you may pass Entry as

Property A/c Dr {Fixed Asset}
To Loan A/c {Secured Loan}
To Cash/Bank A/c { Amount from Bank will reduce; Cash is not possible}
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CS,CA F,Numrologi TusharSampat

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CS,CA F,Numrologi TusharSampat (Expert)
17 April 2015 yes agreed with above reply.....
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