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Joint house property at balance sheet

srikumar (audit staff) (1203 Points)

29 June 2022

my client buy new property under husband and wife name jointly. Amount also 50 percent paid each bank account. now how to account at balance sheet 50 percent of property at husband and wife balance sheet or full value of property at any one of balance sheet . explain experts

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4 Replies

CA Raj Doshi (Practising CA) (8924 Points)
Replied 29 June 2022

If the property possession is pending as on 31st March, then account the amount paid as advance in each Account.

If the property possession is received and agreement done as on 31st March, then capitalise 50% of the total cost in each books as fixed assets

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CA Puja Sharma (Chartered Accountant) (5010 Points)
Replied 29 June 2022

You will show the value of the property for which consideration has been paid by the respective person.

For eg. If both the parties have contributed 10 LAcs each for the Rs. 20 Lacs property then you will mention - " 50% share in ____ property - Rs. 10 Lacs" in the balance sheet.

srikumar (audit staff) (1203 Points)
Replied 29 June 2022

Thanks experts. I am understood

Sneha G (2 Points)
Replied 15 September 2024

I have a question if Husband has contributed 70 lakhs and 5lakhs contributed by wife and property is purchased worth 75 lakhs in name of wife.How do we account it in Wife balance sheet?

My view is to show a unsecured loan with respect to 70 lakhs as property is shown in wife books.