Treatment !!!
This query is : Resolved
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.. !!!
16 April 2014
If u want to take asset in business
.
Dr.land
Cr.calptal account
.
Dr.land
Cr.calptal account
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.
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.
16 April 2014
what shall be the entry date..?
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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