k ltd purchased 50 lakh worth of land for a factory site . the co. demolished an old building on the property and sold the material for 1 lakh the co. incurred additional cost & realized salvaged proceeds during March as follows:
legal fees for purchase contract and recording ownerships 2,50,000
title guarantee insurance 1,00,000
cost for demolition of building 5,00,000
compute the balance to be shown in the land account on 31 march balance sheet .
CAclubindia
