Mr A purchased land on 3.9.2012 2 cent ,1320 sqft ,price of land is 70,000 .now IAM preparing balance sheet on now 31 March 2020 meansÂ
I have to which value balance shown in under fixed assets
plse explain me
8 Replies
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 30 January 2023
You have to show assets on purchase price.
MPR Sanjay Kumar
(3118 Points)
Replied 30 January 2023
@ honourable Rashmi Gandhi mam welcome more months ago my honourable mam of your guidance....
Mam Mr A bought this land on 3.9.2012 RS 70,000 per sqft rate ( so 1320 * 70k= 9 crore twenty four lakhs) this value I have to shown in my 31st March balance sheet value for 2020??
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 30 January 2023
Show in balance sheet at 9crore 25 lakhs
MPR Sanjay Kumar
(3118 Points)
Replied 30 January 2023
@ Rashmi Gandhi mam thank you ,mam some queries
1. So the land should be valued always at purchase price in balance sheet, is there any changes current market price we should have to add for an example in this case study but on 2012 but now for preparing to the 2020 so there is no changes in the market value price??
2. 9 crore twenty five lakh for 2020 so for every 31 March financial statement BS I have to show this value ?? 2021-2022
Kindly advice my honourable mam
prasad Nilugal
( GST Practitioner & Accounts )
(14801 Points)
Replied 30 January 2023
Para 13 of AS 10 talks about revaluation of entire block of Fixed Assets.
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 30 January 2023
1. Yes you have to show at purchase price only as you have paid that amount only. Addition in value recognised in books only on sale of property
2. 9.25 lakhs from every year
2. 9.25 lakhs from every year
MPR Sanjay Kumar
(3118 Points)
Replied 31 January 2023
@ honourable Rashmi Gandhi mam ,thank you very much mam..plse always guide me.thanks
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