Hi Friends,
If a depreciable asset (Eg: Building) is sold in march, cash has been given to the seller but registration is pending. In this case can the seller recognise this income in his books of accounts for that year, If so under what head?
sowmiya.v (ca student) (156 Points)
28 January 2013Hi Friends,
If a depreciable asset (Eg: Building) is sold in march, cash has been given to the seller but registration is pending. In this case can the seller recognise this income in his books of accounts for that year, If so under what head?
CA Kedar Sakhardande
(Proprietor)
(942 Points)
Replied 12 February 2013
Depreciable asset indicates that it is a business asset so it is under the head of business income.
the income has to recognise in the year of cash receipt.
CAclubindia
