accounting of land aquired

This query is : Resolved 

13 March 2008 Govt.company aquired 10000 sqrfitland on payment of Rs.1 for construction of a sub station of power as per notification issued by govt the market price of land is Rs.1000 per sqr fit.what will be accounting treatment in books of account.

13 March 2008 Land will be capitalised at Cost i.e. Rs.1.

13 March 2008 Please clarify under what condition govt. co. acquire land at rs1 IT is govt grant case or something else please clarify


13 March 2008 In any case cost of the acquired land is Rs.1 as far as accounting is concerned.

14 March 2008 The Govt may acquire it under any circumstances, public interest etc.,even voluntary surrender by a party is also possible.

What ever may be the reasons, the accounting can be only at cost.



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