Treatment !!!

This query is : Resolved

Abhishek Kumar (Querist)
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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.. !!!

Ganeshbabu K

Ganeshbabu K (Expert)
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16 April 2014 If u want to take asset in business
.
Dr.land
Cr.calptal account

Rupesh Jain

Rupesh Jain (Expert)
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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.

Abhishek Kumar

Abhishek Kumar (Querist)
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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.

Abhishek Kumar

Abhishek Kumar (Querist)
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16 April 2014 what shall be the entry date..?

Abhishek Kumar

Abhishek Kumar (Querist)
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13 July 2014 Sir if i purchase the Land for personal investment purpose..what will be the journal entry.?

Asha Kanta Sharma online

Asha Kanta Sharma online

(Expert)
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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.

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### 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).

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### 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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