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fixed assets trnsfer to closing stock

chintan patel (employee) (24 Points)

22 February 2011

The assessee purchase land for your personal name than the assessee creating developers partnership frim.

Land introduced to closing stock or not ? plz give me sastify ans..

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2 Replies

Kashyap Joshi (Proprietor ) (260 Points)
Replied 23 February 2011

pls clarify the question. Do u mean that the assessee purchased the land in his own name and the transferred the same to the partnership firm ?

Pls see the transfer papers i.e. stamp duty registrtion, etc. If the business of the firm is to deal in properties then it is ok to transfer the land as closing stock.

Whether the firm is registered under the Indian Partnership Act or LLP ?

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Ramkrishna Mokashi (Chartered Accountant) (734 Points)
Replied 02 March 2011

Assuming,

1. Land is bought by partner in his own name by his own money

2. Later it is transferred to Partnership,

On the date of transfer from Partner to partnership, make one entry for bringing land on books, with Fair Value of the Land. Add it to capital/loan from the Partner.

Hope this clarifies.