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Advance for property in cash base accounting

Man of Pride (Accountant) (49 Points)

24 December 2017

Any advance paid for property in year 2016-17 but registration wii be done in next financial year 2017-2018; the property has to transfer to fixed assets in which year ?

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7 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177741 Points)
Replied 24 December 2017

Earlier of date of 'registration' or 'possession' or registered 'agreement of sell'

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Man of Pride (Accountant) (49 Points)
Replied 24 December 2017

means - which ever is earlier possession or registration has tobe transfer fixed assest

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177741 Points)
Replied 24 December 2017

Yes.... Correct

Man of Pride (Accountant) (49 Points)
Replied 24 December 2017

thanks sir

Man of Pride (Accountant) (49 Points)
Replied 24 December 2017

if possible pls let me know under which section shlould I consider;- as this has to be proved to my colleagues

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177741 Points)
Replied 24 December 2017

The amount paid before any transaction takes place is treated as ADVANCE.

The property is accounted in books only when rights in the property is aquired over it by a registered deed or even physical possession is received by purchaser. (sometimes allotment letter is also considered)