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Stamp Duty Paid For Land .... Tally Entry

A/c entries 23750 views 4 replies

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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Replies (4)
Quick Summary
Stamp duty paid for land purchase is generally capitalized to the cost of land in accounting. Entry is usually: Land A/c Dr (including stamp duty, registration etc.) To Bank/Cash A/c. Alternatively, it can be shown as land acquisition expense and later transferred to land asset account.

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. 

 

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

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

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.


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