Journal entries..

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13 July 2014 What will be the Journal entries for Land bought..

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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13 July 2014 Land A/c Dr.....
To Party or Bank A/c....

Querist : Anonymous

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14 July 2014 If i bought it for Personal investment..
How can i show it in Capital A/c by:-

Land A/c----Dr.
To Capital A/c

Is this Entry OK.. !!

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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14 July 2014 No its not correct.

Capital Account can not be credit.

Querist : Anonymous

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14 July 2014 Then Sir..How can i show Land as Personal Asset in Balance Sheet via Capital A/c

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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14 July 2014 For and Individual All Assets are Individual Assets only. Assets of Proprietorship firm are also his/her personal assets.

Querist : Anonymous

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14 July 2014 Capital A/c .....Dr
To Land A/c

Sir is this Entry OKK..?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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14 July 2014 Land is a Asset and it can not be credited on purchase.
Golden rule of accountancy...
Dr What Comes in Credit what goes out..

Land is coming in and bank Balance is going out..

So...

Land A/c Dr...

To Bank A/c...

Querist : Anonymous

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14 July 2014 But can i withdraw Cash from my accumulated Capital and purchase a LAND..?

Is this possible.?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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14 July 2014 Yes you can do that...

Capital A/c Dr ....

To Drawings A/c.....

Drawings A/c Dr...

To Bank A/c....

(Being Land purchased by withdrawing capital from business).

Remember proprietorship is sole entity. So assets of individual is also asset of proprietorship.