WHAT WILL BE JOURNAL ENTRY FOR THE ADVANCE PAID TO THE SELLER TOWARDS PURACHSE OF PLOT AND UNDER WHAT HEAD IT SHOW BE SHOWN
9 Replies
prasad Nilugal
( GST Practitioner & Accounts )
(14805 Points)
Replied 21 September 2024
Advance to Seller A/c Dr
To Bank A/c Cr
( Advance to seller for purchase of plot)
Advance to Seller A/c , under Loans & Advances, Asset Side Balance Sheet. ( I hope plot is for business purpose)
To Bank A/c Cr
( Advance to seller for purchase of plot)
Advance to Seller A/c , under Loans & Advances, Asset Side Balance Sheet. ( I hope plot is for business purpose)
prasad Nilugal
( GST Practitioner & Accounts )
(14805 Points)
Replied 23 September 2024
Is it a Sole proprietorship ?.
prasad Nilugal
( GST Practitioner & Accounts )
(14805 Points)
Replied 23 September 2024
So , money paid from business to purchase personal plot , is it Correct ?.
prasad Nilugal
( GST Practitioner & Accounts )
(14805 Points)
Replied 24 September 2024
Are going to show this plot , as an Fixed Asset or Non Current Asset in your Sole proprietorship Balance sheet ?.
prasad Nilugal
( GST Practitioner & Accounts )
(14805 Points)
Replied 26 September 2024
As per AS 10 ( Accounting Standards) , If plot is solely for personal use then you Can not show as fixed asset in the Balance sheet , (please refer AS 10) , So amount withdrawn from business to purchase personal plot will treated as Drawing, and will be debited to Capital Account.
Drawing A/c Dr
To Bank A/c Cr
( amount withdrawn from Business for personal purpose)
Capital A/c Dr
To Drawings A/c Cr
( Drawings transfer to Capital account)
Take more opinion on this.
Drawing A/c Dr
To Bank A/c Cr
( amount withdrawn from Business for personal purpose)
Capital A/c Dr
To Drawings A/c Cr
( Drawings transfer to Capital account)
Take more opinion on this.
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