Lands in the possession of a temple have not been taken into books of accounts since long.Is it proper to bring into books those lands by crediting the capital fund account? If so,at what value? Please suggest.
2 Replies
CA SURENDRA KUMAR RAKHECHA
(Practising CA at Surat)
(26263 Points)
Replied 07 March 2010
If the land was donated by a person at the time of creation of the trust then it was liable to stamp duty according to its value on that date.
If the land was donated by a person after the registration of the trust with the Charity Commissioner; then it can be added according to the fair market value of the land on the date of acquisition by the trust.
On that value you can introduce the land in the trust.
First!!!!
(student)
(162 Points)
Replied 09 March 2010
U can record Land at a Nominal Rate in ur Books by crediting Capital Fund Account and Debiting Land Account.
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