Treatment of assets

This query is : Resolved

ram sharan (Querist)
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22 February 2014 IF Mr.A get RS.500000/- as advance against sale of his Building from Mr.B but Mr.B not fulfill the terms of agreement And Mr.A forfieted the amount of Rs.500000/.If WDV of Building is Rs.4000000/-

Then what will be the treatment of building in the books of Mr.A? Whether the building is showen in books on Rs.3500000/ Or Rs.4000000/ ?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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22 February 2014 well this amount should be kept as an advance and not transferred to asset account. So WDV should not be altered.

Thats my view. lets see what other experts say.

ram sharan

ram sharan (Querist)
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22 February 2014 For Advance Mr.A pass Entry in his books.
Cash A/c Dr.500000
To Mr.B 500000

Mr.B A/c Dr.500000
To

What Will be the Credit? Whether Building A/c Or Capital Fund A/c

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