Treatment !!!
This query is : Resolved
Abhishek Kumar
(Querist)
16 April 2014
Dear Experts,
I want to record an Immovable asset (Land) purchased 5 years back into Books..i want to know what will be the Journal Entries required to be passed..Should it be treated as a Personal Assets in the Balance Sheet..
Pls tell me the effect in in the Balance Sheet..Thank You.. !!!
I want to record an Immovable asset (Land) purchased 5 years back into Books..i want to know what will be the Journal Entries required to be passed..Should it be treated as a Personal Assets in the Balance Sheet..
Pls tell me the effect in in the Balance Sheet..Thank You.. !!!
Ganeshbabu K
(Expert)
16 April 2014
If u want to take asset in business
.
Dr.land
Cr.calptal account
.
Dr.land
Cr.calptal account
Rupesh Jain
(Expert)
16 April 2014
if you are doing business and land not accounted then you can pass following entry
land a/c dr
to capital a/c
but make sure of sources of fund for land.
land a/c dr
to capital a/c
but make sure of sources of fund for land.
Abhishek Kumar
(Querist)
16 April 2014
Sir, actually the land was purchased 5 years back..it was not recorded in books..Now i want to enter it in the Books..
Is it fine to route it through Capital A/c..
Are there any other ways ??
Pls suggest !!
Thank You.
Is it fine to route it through Capital A/c..
Are there any other ways ??
Pls suggest !!
Thank You.
Abhishek Kumar
(Querist)
16 April 2014
what shall be the entry date..?
Abhishek Kumar
(Querist)
13 July 2014
Sir if i purchase the Land for personal investment purpose..what will be the journal entry.?
02 August 2025
If the land is purchased **for personal investment** (i.e., not related to business), typically it **should not be recorded in the business books** because personal assets are kept separate from business assets.
However, if you want to record it in your personal accounting or for consolidated tracking, the entry would be:
**On the date of purchase:**
* **Dr. Land (Asset Account)**
* **Cr. Personal Capital / Owner’s Capital Account**
This entry reflects that the land is owned by you personally and the business capital or owner’s equity is credited because the asset is part of your personal holdings.
---
### If the land is purchased **for business use**, but was not recorded earlier:
You can record it now by passing:
* **Dr. Land Account** (at purchase cost or fair value)
* **Cr. Capital Account** (representing your equity contribution to the business)
You should ideally mention the **purchase date** or the date you want to record the transaction in your books (usually the current date, with a note about the purchase date).
---
### Key points:
* If for personal use: keep separate from business accounts, and record under your personal capital account.
* If for business use: record as a fixed asset, credited to capital or loan account.
* Provide **notes/footnotes** in your financial statements explaining the retrospective entry.
If you want, I can help you draft a proper journal entry with narration or an explanation for audit purposes!
However, if you want to record it in your personal accounting or for consolidated tracking, the entry would be:
**On the date of purchase:**
* **Dr. Land (Asset Account)**
* **Cr. Personal Capital / Owner’s Capital Account**
This entry reflects that the land is owned by you personally and the business capital or owner’s equity is credited because the asset is part of your personal holdings.
---
### If the land is purchased **for business use**, but was not recorded earlier:
You can record it now by passing:
* **Dr. Land Account** (at purchase cost or fair value)
* **Cr. Capital Account** (representing your equity contribution to the business)
You should ideally mention the **purchase date** or the date you want to record the transaction in your books (usually the current date, with a note about the purchase date).
---
### Key points:
* If for personal use: keep separate from business accounts, and record under your personal capital account.
* If for business use: record as a fixed asset, credited to capital or loan account.
* Provide **notes/footnotes** in your financial statements explaining the retrospective entry.
If you want, I can help you draft a proper journal entry with narration or an explanation for audit purposes!
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