PURCHASE LAND

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If you've bought land using business funds, but the land isn't for business purposes, it's generally treated as drawings. This means it reduces your capital balance. While it will decrease your bank balance, the capital account itself might not be directly affected by the purchase.

Ashim kr Ray

Ashim kr Ray (Querist)
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14 June 2021 Sir,

I have purchase land ,whether i have to deduct the amount in capital A/c .

Ganeshbabu K

Ganeshbabu K (Expert)
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14 June 2021 if land is not for business purposes and you bought from business money

yes account payment made as drawings- which reduce your capital balance

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