Passing of Accounting Entries
This query is : Resolved
SRINIVASA RAO P
(Querist)
13 March 2025
'X' and 'Y' are two Real Estate Companies.
Both of them have entered into an MOU for purchase of open plots by 'X' from 'Y'.
Later 'X' sells these plots to its prospective customers.
Now a prospective customer 'Z' approaches 'X' and agrees to purchase a plot for a total consideration amount of Rs. 12 lacs and pays an advance amount of Rs. 5 lacs to 'X'.
Later 'Z' pays the balance amount of Rs. 7 lacs (which is the consideration value mentioned in the Sale Deed ) directly to 'Y' at the advice of 'X' to avoid double stamp duty (i.e., from 'Y' to 'X' and again 'X' to 'Z') and the Sale Deed is executed by 'Y' in favour of 'Z'.
Also the consideration amount payable by 'X' to 'Y' for purchase of plot from 'Y' by 'X' is also 7 lacs.
Now how to pass the journal accounting entries in the Books of 'X' and 'Y' for closing the total amount of Rs. 12 lacs received from 'Z' for declaring it as income.
Kindly guide.
Thank You.
Both of them have entered into an MOU for purchase of open plots by 'X' from 'Y'.
Later 'X' sells these plots to its prospective customers.
Now a prospective customer 'Z' approaches 'X' and agrees to purchase a plot for a total consideration amount of Rs. 12 lacs and pays an advance amount of Rs. 5 lacs to 'X'.
Later 'Z' pays the balance amount of Rs. 7 lacs (which is the consideration value mentioned in the Sale Deed ) directly to 'Y' at the advice of 'X' to avoid double stamp duty (i.e., from 'Y' to 'X' and again 'X' to 'Z') and the Sale Deed is executed by 'Y' in favour of 'Z'.
Also the consideration amount payable by 'X' to 'Y' for purchase of plot from 'Y' by 'X' is also 7 lacs.
Now how to pass the journal accounting entries in the Books of 'X' and 'Y' for closing the total amount of Rs. 12 lacs received from 'Z' for declaring it as income.
Kindly guide.
Thank You.
12 August 2025
https://docs.google.com/document/d/1xv889Jtl3YPTAPkAzIfWBEGSowiqa0G3PfGDZ8yzva8/edit?usp=sharing
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST on reimbursement of expenses
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Visiting card purchase
- Query on effect of registration of property
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Number of years as per AS amortisation of Goodwill
- Equity Share Sale and Purchase
- Additional trade name
- Wrong CMPo8 file
- Whether output tax is taken credit by purchaser
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
