suppose i purchased a flat at 15 lacs and i have paid stamp duty and registration charges. but i have made payment of only 5 lacs to the transferor and still 10 lacs is pending.
i have shown rs.5,00,000 as advance against flat. but other senior CAs has told me to show flat in the b/s @15 lacs and 10 lacs as loan in the liability side .
03 June 2012
If property is registered in your name and possession and enjoyment of the flat rest with you, Rs. 15 laks and Rs.10 lakhs can be shown in balance sheet ,as asset and liability respectively, provided Rs. 10 laks liability is mentioned either in the sale deed or in the agreement of sale.
03 June 2012
Your CA is partially correct. Since you became the registered owner of the property from the date of the registration, you should show the Flat on the asset side of the Balance Sheet. On the liability side you should not show the amount as loan but Sundry Creditor for Capital Goods.
CAclubindia
