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Accounting entry for land received by gift

A/c entries 3452 views 1 replies

Suppose I received gift of land of 20 Acres from my friend which has current market value of Rs.20000000. What is the accounting entry in my books & at what amount as per AS-10.

Replies (1)

Dear Nilesh,

AS 10 suggest to capitalized assets on historical cost basis. It states what ever amount is paid to acquire fixed assets is the cost of acquisition of that fixed asstes including any irrecoverable taxes and charges.

 

In your case land is gifted to you but still there are certain admintrative cost which need to transfer title of such land in the name of company such as registeration charges of land.

Such cost can be treated as cost of acquisition of land.


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