Purchase of land
This query is : Resolved
10 April 2015
HI, PROFESSIONALS
I PURCHASED AGRICULTURAL LAND IN THE NAME OF AGREEMENT SALE CUM POWER OF ATTORNEY IN RS. 15,00,000 ON 30.11.2005 AFTER THAT DEVELOPMENT OF LAND AND SOME PLOT OF LAND SALE. MY QUESTION PURCHASE OF LAND FIXED ASSET OR PURCHASE ACCOUNT IN PROFIT LOSS OF ACCOUNT DEBIT SIDE.
PLZ THIS MATTER VERY URGENT
I PURCHASED AGRICULTURAL LAND IN THE NAME OF AGREEMENT SALE CUM POWER OF ATTORNEY IN RS. 15,00,000 ON 30.11.2005 AFTER THAT DEVELOPMENT OF LAND AND SOME PLOT OF LAND SALE. MY QUESTION PURCHASE OF LAND FIXED ASSET OR PURCHASE ACCOUNT IN PROFIT LOSS OF ACCOUNT DEBIT SIDE.
PLZ THIS MATTER VERY URGENT
10 April 2015
If it is your stock in hand (if you regularly purchase and sells land), then it would come in your Profit & Loss A/c as purchase and sale.
Else, in the balance sheet as an asset.
Else, in the balance sheet as an asset.
10 April 2015
THX SIR,
I HAVE PURCHASED 4 ACRES BUT I HAVE SALE ONLY 1 ACRE IN YEAR 2005-2006
I HAVE PURCHASED 4 ACRES BUT I HAVE SALE ONLY 1 ACRE IN YEAR 2005-2006
10 April 2015
You want to know about Income Tax treatment or just accounts ?
10 April 2015
Then it should be treated as a sale of asset.
The purchase value to be taken proportionately. Since there is no depreciation, ignore it.
Now the entry would be:-
Sale of Land A/c Dr.
To. Land A/c
To. Profit on sale of Land Ac
On receipt of consideration,
Bank A/c Dr.
To. Sale of Land A/c
The purchase value to be taken proportionately. Since there is no depreciation, ignore it.
Now the entry would be:-
Sale of Land A/c Dr.
To. Land A/c
To. Profit on sale of Land Ac
On receipt of consideration,
Bank A/c Dr.
To. Sale of Land A/c
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