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Site purchase value in balance sheet

11 December 2024

One my client purchase a site. SR value 6,28,000 in paper and paid stamp duty 36,237. My doubts is I take in balance as asset site value of excluding stamp duty or including stamp duty paid in balance sheet. Pls give me valuable advice.

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Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (6311 Points)
Replied 12 December 2024

Site value should be recorded at cost and stamp duty separately.

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paydayloan seloanwarehouse (4 Points)
Replied 12 December 2024

The purchase value of a site should be recorded as an asset under Property, Plant, and Equipment (PPE) on the balance sheet, including associated costs like legal fees, transfer taxes, and improvements. This asset is depreciated over time, reflecting its consumption, and should be determined according to accounting standards.

Alicent Hightower (India) (27 Points)
Replied 13 December 2024

Include the stamp duty of SR 36,237 in the site's asset value on the balance sheet, along with the purchase price of SR 6,28,000, totaling SR 6,64,237. Stamp duty is part of the acquisition cost and not an expense. Block Blast

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paydayloan seloanwarehouse (4 Points)
Replied 22 January 2025

The purchase value of a site should be recorded as an asset under Property, Plant, and Equipment (PPE) on the balance sheet, including associated costs like legal fees, transfer taxes, and improvements. This asset is depreciated Payday Loans eLoanWarehouse over time, reflecting its consumption, and should be determined according to accounting standards.