Include house property in business balance sheet.

Mr. A have a house property built in 2004 which contains :

1. Under Ground : Using For his own Business

2. Ground Floor : Residense of Mr. A and his family

3. First Floor : Let out and earning Rent.

 

Mr. A Taken a loan against property on such Property. He wishes to show his Building in his Balance Sheet and Claim Depreciation. Business Started in 2016.
Q. 1 : Can Mr. A show Building in his balance sheet?

Q 2 : If Yes, Then at Which Value he can take his property in Balance sheet? (Cost, NRV, Latest Revalution Report by Authorised Personnel.)

Please Solve Problem

Replies (2)

Cost of Portion of Building in which Activity of Business is taken.  

you need to. calculate depreciation till the year 2015 from date of purchase with respect to the apportioned cost that pertains to your business, reduce it from the cost and show the balance as fixed assets in BS by way of capital introduction.
the remaining part used for residence and letting can be shown as investment at cost which shud be apportioned appropriately

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