MOST Urgent Accounts

I m doing stat audit in one of the big advertising co. while doing auditing i found query; for example ABC an advertising co. sales its hoarding disply to XYZ builder for invoice value rs.50,00,000/- in considartion ABC co received 10 flats of rs.5,00,000/- each and paid stap duties and registration fee of rs.8,00,000/- 

BUT RS.8,00,000/- IS NOT TRACEABLE IN ANY BANK OF THE CO. THEN RS.8,00,000/- SHOULD BE CAPITALISED OR NOT ?

Replies (5)

unless the amount is paid from the accounts, it can not be capitalized, ask for more details of this registration cost, whether paid by company or by XYZ builder. and finalize the same on the basis of their statement.

Then who has paid Stamp Duty?

if registration and stamp duty paid by XYZ builder then that much amt should be capitalised to Fixed asset ?

If the stamp duty is paid by the XYZ builder, then there should be no question of considering the amount. If  the amount is paid by the ABC company, then it has to be capitalised.

Generally Fixed Assets are recorded at Historical Cost.

Here Historical Cost in the hands of the Company is Rs. 50,00,000/-

In the above case if stamp duty is paid by ABC company then it should be capitalised by it otherwise not possible.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details
Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
ARTICLESHIP 23 October 2026
Articled Trainee

J Y & CO

Hyderabad

CA Inter

View Details
Company
28 October 2026
Assistant Director/ Associate Director-Finance & Accounting

Krea University

Chennai

CA

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details