23 August 2020
Dear colleagues, there was a land purchased in 2016. it was purchased out of loan and own contribution. own contribution could not be debited to the land. now in 2019, when it was sold, it was realised that land in books is at value lesser than purchase cost. how can it be rectified in books of 2019-20? plz reply soon
23 August 2020
Pass a journal Entry 01/04/2019 by debiting the Land and crediting the P&L Account with the amount of own contribution invested for purchase of Land.
CAclubindia
