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Stamp Duty Paid For Land .... Tally Entry

21 March 2023

If Our Company Paid Stamp duty Charges for land purpose how to entry in tally and which under head comes which ledger

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4 Replies

Yasaswi Gomes new (Finance ) (4474 Points)
Replied 21 March 2023

The land is used for production and rental purposes

Use the journal ledger

Dr. Land

Cr. Bank

Or use direct expenses head Dr. And cr. Bank

Or else treat this as indirect expense. If you go through the attachment no one can understand intial recognition.

Attached File : 3176554 20230321125155 as10 16012018.pdf downloaded: 128 times

NARENDRA (ACCOUNTS MANAGER) (1488 Points)
Replied 21 March 2023

you should debit to the land ................, all the expenses regarding buying properties ,i.e. Registration Fees or Stamp duty should club into the properties .

Yasaswi Gomes new (Finance ) (4474 Points)
Replied 21 March 2023

So tally can't increase land stamp duty and reconciles between them. That's basic capitalisation so use first entry in the journal voicher

Ayush (Executive ) (6232 Points)
Replied 26 October 2023

Land Acquisition Expenses or Stamp Duty Expenses account

To Bank or Cash account

Note :

Debit the "Land Acquisition Expenses" or "Stamp Duty Expenses" account: This increases the expense on your income statement, reflecting the cost of stamp duty paid.

Credit the appropriate bank or cash account: This reflects the decrease in your bank balance or an increase in your cash outflow.

Allocate Costs if Necessary: If the stamp duty charges are part of a larger transaction involving the acquisition of land, you might need to allocate the costs to the specific land asset. In such cases, you can use a separate ledger account for the land asset. The entry will look something like this:

Land account

To Land Acquisition Expenses or Stamp Duty Expenses account

Debit the "Land" account: This represents the increase in the value of the land acquired.
Credit the "Land Acquisition Expenses" or "Stamp Duty Expenses" account: This reduces the expenses related to the land acquisition.