2 Points
Joined October 2017
Respected Madam,
Kindly guide me Three Partners A,B,C Purchased Land/Plot for Rs.6000000.(A=2000000,B=3000000,C=1000000) and constructed Office on it with a Construction Cost of Rs.3000000.(A=1500000,B=500000,C=1000000).Should we consider their Office Construction Cost on Land as their Capital invested in business or should we charge as newly created ledger named as "Office Construction Cost A/C". What Journal Entries will be passed in this case and its effects in Income Statement and Balance Sheet.
I shall be very thankful to you for this guidance in this matter.
Thank You!
Best Regards.
Muhammad Farooq.