Entry of Property (Flat)
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
02 August 2010
I had a flat which was sale by me in march'10
in my balance sheet Rs.225000/- was as asset of flat... now flat sold out for rs. 1400000/- means rs.1175000/- made profit. from which i have invested in rural capital gain bonds to take exemption from capital gain tax...& rs. 450000/- to my daughter as loan....
so what will be the effect of acccounts (how to show this transation in balance sheet) and what about tax.
in my balance sheet Rs.225000/- was as asset of flat... now flat sold out for rs. 1400000/- means rs.1175000/- made profit. from which i have invested in rural capital gain bonds to take exemption from capital gain tax...& rs. 450000/- to my daughter as loan....
so what will be the effect of acccounts (how to show this transation in balance sheet) and what about tax.
02 August 2010
Accounting entry may be passed by debiting bank account (14 Lac) and crediting asset account (2.25 lac) / profit on sale of assets (11.75 lac). Profit may be shown as credit to individual capital account.
Further accounting entry relating investments and loan to daughter in law also may shown in asset side appropriately,by crediting bank account.
According to indexed cost of aqui. and capital gain amts, sufficient investment in cap gain bonds should be made, to avoid any tax liability.
Further accounting entry relating investments and loan to daughter in law also may shown in asset side appropriately,by crediting bank account.
According to indexed cost of aqui. and capital gain amts, sufficient investment in cap gain bonds should be made, to avoid any tax liability.
02 August 2010
DEAR SIR,
THE PERSON IS NOT PROVIDING DETAILS OF DATE OF ACQUISTION OF PLOT, WITHOUT IT, HOW CAN WE ARRIVED INDEXED COST OF ACQ IS 7.81 LACS.
THE PERSON IS NOT PROVIDING DETAILS OF DATE OF ACQUISTION OF PLOT, WITHOUT IT, HOW CAN WE ARRIVED INDEXED COST OF ACQ IS 7.81 LACS.
Querist : Anonymous
Querist :
Anonymous
(Querist)
02 August 2010
thanxs both experts,
I want to know how do i entered amount on which head in balance sheet... pls help me to understand this matter. bcs my balance sheet do not tallied.
I want to know how do i entered amount on which head in balance sheet... pls help me to understand this matter. bcs my balance sheet do not tallied.
02 August 2010
suppose you received 14 lacs, the same will go to bank account and exisiting asset of 2.25 lac will be eliminated. so your assets increased by 11.75 lacs, which will equal/coincide with increase in your capital base due to profit on sale of assets. This transaction do not bring any mismatch to your balance sheet.
second transaction of investment and third transaction of loan will increase asset side and reduce balance in bank account(aaset side) by corresponding amount. so again no mismatch.
hope the above clarifies.
second transaction of investment and third transaction of loan will increase asset side and reduce balance in bank account(aaset side) by corresponding amount. so again no mismatch.
hope the above clarifies.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- ITC temporary reversal and reclaim
- TDS U/S. 194NF
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- GST ON EXPORT COMMISSION
- Tds on building rent monthly
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
- Strategical investment in Public listed company
Trending Online Classes
CAclubindia
