Treatment of assets
This query is : Resolved
ram sharan
(Querist)
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/ ?
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
(Expert)
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.
Thats my view. lets see what other experts say.
ram sharan
(Querist)
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
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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