Asset removed from balance sheet after sold.

This query is : Resolved

MANJUNATHA M.R (Querist)
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04 November 2013 Dear Experts, I have sold my immovable property and paid STCG accordingly. I removed the asset value in Assets side in Balance Sheet.My Balance sheet will not tally to the extent of my immovable property. What should I do? Whether the same proportion will be reduced from my Capital Account. Please guide me. Thanks in Advance.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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04 November 2013 Asset removal will effect your cash or bank. it will be increased. incase asset sale money has been utilised for personal use, then need to show as drawings and reduce from capital

CA Chitta Ranjan Das

CA Chitta Ranjan Das (Expert)
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05 November 2013 In case of a company form of entity, is that reduction of capital for drawings of moneyis allowed ?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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05 November 2013 It is not allowed. it should be cash or bank need to be increased and loss/profit on sale need to be adjusted with p&l a/c

Shivang Chokshi

Shivang Chokshi (Expert)
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06 November 2013 Ur asset decreases bt bank and/or cash increases.. thus effect will b tallied in same area of assets unless d asset is part of personal drawings where capital reduces and asset reduces.. the money used is for personal use so there is no effect in cash/bank in balance sheet

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