A P.ltd company sold a piece of Land for 40 lacs in Mar,3,2016,Land was purchased in 2008 for Rs.15 lacs.
How same needs to be accounted & is any entry to be passed by company regarding its taxability.
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Accounting of sale of land
Replies (5)
profit of 25 lacs transfer to profit and loss account
Yes, the profit should be transferred to P&L a/c. There is no need to pass any separate entry on its taxability.
Yes , the entry for sale of land ..
cash a/c. Dr 40Lacks
to land a/c Cr 15lacks
to p&l a/c. Cr 25lacks
cash a/c. Dr 40Lacks
to land a/c Cr 15lacks
to p&l a/c. Cr 25lacks
Agree with Gopinath
but do not accept cash for property transaction.
What's issue in receipt in cash.
There is no disallowance u/s 40(A)3 for Fixed Asset purchase.
Please mention,is there any other issue here.
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