Anil Kumar (Proprietor) (107 Points)
13 February 2015A/c Entries for Leasehold Residential Flat alloted from Govt. Authority on hire-purchase basis:
Cost of the Flat 18,95,000
Allotment Money Deposited 5,68,000
Balance 13,26,500 Payable in 8 half yearly instalments
Total Interest Payable on 8 year instalments 6,76,516
Thanks
Puneet Mittal
(Sr. Officer Accounts)
(212 Points)
Replied 14 February 2015
Please clarify does interest includes in cost of flat. If interest is not include mentioned the amount of each installment.
Anil Kumar
(Proprietor)
(107 Points)
Replied 14 February 2015
Thanks for your reply.
Please find the attached file for details....
Puneet Mittal
(Sr. Officer Accounts)
(212 Points)
Replied 14 February 2015
Entry of First Year.
At the Time of Allotmant
1. House property a/c Dr. 18,95,000
To Government Authorities 18,95,000
2. Government Authorities Dr. 5,68,500
To Bank 5,68,500
At the time of Ist Instalment
3.Interest a/c Dr. 79,590
To Government Authorities 79,590
4.Government Authorities Dr. 1,62,496
To Bank 1,62,496
At the time of IInd Instalment
5. Interest a/c Dr. 74.616
To Government Authorities 74.616
6. Government Authorities Dr. 1,57,522
To Bank 1,57,522
Entry of interest due and payment of instalment will be passed in each financial year.
Anil Kumar
(Proprietor)
(107 Points)
Replied 14 February 2015
Thank you Puneet Ji, one more query
the flat is not the part of my business, its just for investment purpose. Should I capitalised both the amount, Principal and Interest in books, if yes, please let me know the accounting entry.
Thank You
Puneet Mittal
(Sr. Officer Accounts)
(212 Points)
Replied 14 February 2015
You can not capitalised the amount of interest.
CAclubindia
