one of my friend has purchased
the land for Rs 1 lakh (assumed) the land was on pvt Ltd name. so he became the director of that company and paid the consideration to existing director for land. New director has given the chq on company name and existing director withdrawn that amount. after that existing director retired and transfer all his rights to purchaser. my query is whether that land originally recorded at Rs 50000 need to revalued at 1 lakh in books by creating capital reserve or not?? And what book entry would be passed for that transaction
CAclubindia
