Journal entries

My company wanted to buy a property Rs. 50 million. We had signed the Sales & Purchase agreement/contract with the building owner but due to some reason it was cancel. We paid huge amount of compensation Rs. 500,000/- on cancellation the property agreement.

What will be the JV. 

Thank & Best regards

Anwar Kazi

 

 

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Compensation A/c Dr To Cash P&L A/c Dr To Compensation

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