Accounting Entries

Fahad (Studnet) (50 Points)

24 September 2009

What entries will be passed for following transactions in Company accounts:

a) A reserve created for purchase of land

b) Purchase of land

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5 Replies

sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 24 September 2009

entry for creating reserve

P&L appropraition dr

To Reserve

Being Reserve created for Purchase of Land

2.For Purchase of Land By debiting reserve

Dr Reserve for purchase of land

cr bank

sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 24 September 2009

sorry my second entry is wrongit will be

Dr Land

cr Bank

and the reserve standing in the books will be credited to p&l as no longer required

Fahad (Studnet) (50 Points)
Replied 25 September 2009

Originally posted by :sivaram
"	sorry my second entry is wrongit will be Dr Land cr Bank and the reserve standing in the books will be credited to p&l as no longer required	"

Fahad (Studnet) (50 Points)
Replied 25 September 2009

thnx

Fahad (Studnet) (50 Points)
Replied 25 September 2009

Originally posted by :sivaram
"	entry for creating reserve P&L appropraition dr To Reserve Being Reserve created for Purchase of Land 2.For Purchase of Land By debiting reserve Dr Reserve for purchase of land cr bank	"