Capitalisation of property under loan and advance payment
This query is : Resolved
jaya Sanal
(Querist)
16 April 2015
Dear Sir,
We have purchased a property worth 1.34 cr wherein Rs.80 lakhs is loan from bank and remaining 54 lakhs is paid to the owner. LAP is recorded in the books as liability and part payment is kept as advance to the owner. what is the correct accounting entry for this?
regds:jaya
We have purchased a property worth 1.34 cr wherein Rs.80 lakhs is loan from bank and remaining 54 lakhs is paid to the owner. LAP is recorded in the books as liability and part payment is kept as advance to the owner. what is the correct accounting entry for this?
regds:jaya
17 April 2015
Greetings Jaya,
Incase u have already bought the property in your name you may pass Entry as
Property A/c Dr {Fixed Asset}
To Loan A/c {Secured Loan}
To Cash/Bank A/c { Amount from Bank will reduce; Cash is not possible}
Incase u have already bought the property in your name you may pass Entry as
Property A/c Dr {Fixed Asset}
To Loan A/c {Secured Loan}
To Cash/Bank A/c { Amount from Bank will reduce; Cash is not possible}
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17 April 2015
yes agreed with above reply.....
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