Assisi Nilus (3 Points)
03 January 2023how do you treat it
Land bought on 1-4-1990
cost: 40lacs
sold a part of land which has purchase price of 2lacs for 60lacs
Yasaswi Gomes new
(Finance )
(4514 Points)
Replied 03 January 2023
I think you have to do indexation of the land, find current value and show gain or loss on the sale. I dont understand how lower of carrying amount and fvlcs is applicable here. Maybe it is still measured that way and record gain or loss over it.
Yasaswi Gomes new
(Finance )
(4514 Points)
Replied 03 January 2023
Plus, you have to close the revaluation account and offset the surplus or deficit with similar clasz of assets revalutuon gain and loss. So inde the land, nrv is 60 and report gain or loss. Then finally deal with revaluation account
CAclubindia
