On of my client has sold land in last quarter. Significant brokerage was paid during this transaction. Brokerage should be accounted in account of fixed asset as cost of sales or debited to profit & loss account.
7 Replies
CA CS Amit Borade
(Chief Accountant)
(2828 Points)
Replied 18 January 2010
in the both cases it is going to hit P&L only the heads going to defer.
As per my opinion it should be adjusted in Sales Value as cost of Sales.
Ram Avtar Singh
(Nagari Sultanpur U.P.Delhi)
(14497 Points)
Replied 18 January 2010
commission to be debited in commssion account.
SUNIL SINGH
(ACCOUNTANTS AND INCOMETAX WORKS)
(142 Points)
Replied 18 January 2010
as per nature of business, brokerage is debit profit & loss or fixed assets account , 01 ha assessee business nature is pur & sold of assets being brokerage is profit and loss a/c.02 the assessee business other than pur and sold of fixed assets being brokerage is expenses of sales of assets and debit in fixed assets.
CA CS CIMA Prakash Somani
(Landmark Group)
(23502 Points)
Replied 18 January 2010
It shoudl be adjusted to sale value
Deepak Kumar
(Regional Head)
(59 Points)
Replied 18 January 2010
in my openion it should go to commission account
manish
(Article Assitant)
(358 Points)
Replied 18 January 2010
Brokerage paid for the Selling of land so it will be adjusted against the sale value not by the p&l A/c
manish
(Article Assitant)
(358 Points)
Replied 18 January 2010
If the assessee has the business or profession for buying and selling of land then it may be adjusted against P&L A/c. But if the assessee had sold the land not as profession or business then it should be adjusted against the sold value of land.
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