Factory building not shown in assets

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2016 Dear sir,
From the last six year i am running factory but i have not shown factory building in assets yet now i want to
show it in assets, in this regard what accounting entry will be passed also
Tell me how to know the exact price of building as per IT act. To be charged depreciation,

Regard
Mukesh kalra

Amol S Joglekar

Amol S Joglekar (Expert)
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20 September 2016 if you have the details of the cost price of the same....you can deduce the depreciated value.
If you claim that you dont have the details as to cost, you can get the factory building valued by Govt Approved Valuer.

Sandeep Dharar

Sandeep Dharar (Expert)
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20 September 2016 U must calculate the actual cost of the assets from the date of purchase by computing depreciation on it(dont show it in books. it is only for personal cALCULATION.

Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2016 Sir,
If i show the factory building (asset) in books then any consequences

Amol S Joglekar

Amol S Joglekar (Expert)
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20 September 2016 not really..... you can show it now.....

Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2016 Sir,
2009 i had purchased the land and constructed the factory on it now i have not any record of cost incurred in construction of factory. Plz tell me weather valuer will valued the factory of 2009 or existing cost,

Amol S Joglekar

Amol S Joglekar (Expert)
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20 September 2016 Valuer can value the property as of 2009 or even as of today. The choice is with you. For accounting purpose, you need to value it as on 2009.....cost price.

Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2016 Sir,
If i valued the proprety as on 2009 then can i claim the depreciation of 2009, 2010, 2011 till 2015 however assessment has already been done

Amol S Joglekar

Amol S Joglekar (Expert)
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21 September 2016 01. Taking into account the stake of the benefits, you have to decide it by yourself whether or not the earlier returns to be revised.
02. Whether you claim the depreciation or not, the WDV as on say 01/04/2016 shall be taken into books of accounts.

Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2016 Ok,
No earlier return can be revised as the assessment has already been done therefore No question of revision. Plz clarify weather depreciation shall be deemed to be charged in earlier year

Amol S Joglekar

Amol S Joglekar (Expert)
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21 September 2016 yes, depreciation shall be deemed to have been charged in earlier years.

Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2016 as i want to show it in books plz tell me what accounting entry will be pass as on 1/4/2016 weather factory building DR.....
capital accounts CR......

is it correct

Amol S Joglekar

Amol S Joglekar (Expert)
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21 September 2016 yes, it is correct. Pass it at WDV

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