Please help
Land & Building valued by valuer at 3 crores as on 31/3/17. As per books, cost of land is 39,97,220 & WDV of Building as on 31/3/16 is 8660385 (gross 1,15,47,705 - acc dep 2887320). Please suggest the treatment as on Mar 2017 in the light of revised AS 10.
Thanks in advance
here company has to consider revised value for land and building separately out of 3Crores.
if we are taking example of 50% is for land and balance is for buildings.
Land: (if first time revaluation Profit on Uowards Revaluation is credited to Capital reserve a/c)
Land A/c Dr. 1,10,02,780
To Capital reserve 1,10,02,780
Buildings:
Buildings A/c Dr. 63,39,615
To Profit and loss a/c 28,87,320 (Amount of Depreciation considered upto now)
To Capital Reserve A/c 32,52,295
CAclubindia
