accounting of land aquired

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D C Sivastava (Querist)
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13 March 2008 Govt.company aquired 10000 sqrfitland on payment of Rs.1 for construction of a sub station of power as per notification issued by govt the market price of land is Rs.1000 per sqr fit.what will be accounting treatment in books of account.

Amit

Amit (Expert)
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13 March 2008 Land will be capitalised at Cost i.e. Rs.1.

Jitender Garg

Jitender Garg (Expert)
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13 March 2008 Please clarify under what condition govt. co. acquire land at rs1 IT is govt grant case or something else please clarify

CA Praveen Chopra

CA Praveen Chopra (Expert)
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13 March 2008 In any case cost of the acquired land is Rs.1 as far as accounting is concerned.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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14 March 2008 The Govt may acquire it under any circumstances, public interest etc.,even voluntary surrender by a party is also possible.

What ever may be the reasons, the accounting can be only at cost.