its urgent plz solve this query
This query is : Resolved
09 April 2010
On 1st March, Kripalu Ltd purchased Rs.5 Lakhs worth of land for a Factory Site. The Company
demolished an old building on the property and sold the material for Rs.10,000. The Company
incurred additional cost & realized salvaged proceeds during March as follows:
Legal Fees for purchase contract and recording ownership Rs.25,000
Title Guarantee Insurance Rs.10,000
Cost for Demolition of Building Rs.50,000
Compute the balance to be shown in the Land Account on 31st March Balance Sheet.
demolished an old building on the property and sold the material for Rs.10,000. The Company
incurred additional cost & realized salvaged proceeds during March as follows:
Legal Fees for purchase contract and recording ownership Rs.25,000
Title Guarantee Insurance Rs.10,000
Cost for Demolition of Building Rs.50,000
Compute the balance to be shown in the Land Account on 31st March Balance Sheet.
09 April 2010
The amount to be recorded in Land Account is the cost incurred for making the asset ready to use. So the amount will be >
Cost of Purchases - 5,00,000
Legal Fees - 25,000
Guarantee Insurance - 10,000
Cost Of dem of Bldg. - 50,000
Less. Cost of Salvage- (10,000)
Total - 5,75,000
Cost of Purchases - 5,00,000
Legal Fees - 25,000
Guarantee Insurance - 10,000
Cost Of dem of Bldg. - 50,000
Less. Cost of Salvage- (10,000)
Total - 5,75,000
09 April 2010
thanks a lot...............
09 April 2010
AGREE WITH RAHUL JI.
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