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Expenses on sale of fixed asset

Statutory Audit 2262 views 7 replies

On of my client has sold land in last quarter. Significant brokerage was paid during this transaction. Brokerage should be accounted in account of fixed asset as cost of sales or debited to profit & loss account.

Replies (7)

in the both cases it is going to hit P&L only the heads going to defer.

As per my opinion it should be adjusted in Sales Value as cost of Sales.

commission to be debited in commssion account.

as per nature of business, brokerage is debit profit & loss or fixed assets account , 01 ha assessee business nature is pur & sold of assets being brokerage is profit and loss a/c.02 the assessee business other than pur and sold of fixed assets being brokerage is expenses of sales of assets and debit in fixed assets.

It shoudl be adjusted to sale value

in my openion it should go to commission account

 Brokerage paid for the Selling of land so it will be adjusted against the sale value not by the p&l A/c

 If the assessee has the business or profession for buying and selling of land then it may be adjusted against P&L A/c. But if the assessee had sold the land not as profession or business then it should be adjusted against the sold value of land. 


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