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If a company purchase a land along with

Others 289 views 4 replies
company purchase a land along with property tax pending of 5 yrs so how do you account for it ??
Replies (4)
Add property tax paid in cost of plot.
As per icai guidelines all costs incidental with the land is to be capitalized for fixed asset.

Dr. Land

Dr. Tax capitalised

Cr. Tax liability

The entry is .

fixed assets dr.
input c gst Dr.
input sgst Dr.
sundry creditor cr.

rates and taxes Dr.
Tax liability cr.
tax liability Dr.
cr. Bank
fixed asset Dr.
rates and taxes cr.


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