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Accounting treatment of land

Rohit soni (Student CA Final ) (33 Points)

31 May 2016

hi.. pls help.. what should be the accounting treatment of a land used by husband for his business purpose..but the land was registered in the name of wife... thanks in advance ...

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3 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 13 July 2016

No difference in capital acc.

Rental Income/expenditye can be posted in both provided proper deed made.

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CA Ashish Gupta (Internal Audit GST Balance Sheet Income Tax ) (55 Points)
Replied 13 July 2016

you can book rental expenses in books

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CA shanky pahoja (accountant) (615 Points)
Replied 13 July 2016

If land is transfered to business or husband(considering it to be sole proprietor) , he shall make an entry in the books by crediting capital and debiting land.

If he want to show it as land taken on rent then he can debit land rentals and credit cash/ bank/ wife's a/c

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