Question

Aslam purchased 1000 squad. meter land for 3 Crore to build a factory at the end of the year market value the land 2.70 Crore is this a correct treatment

Answer 1

deprication a/c Dr. 30,00,000

To land a/c 30,00,000

Explanation:

deprication is an expense so, according to modern rules of accounts Dr. debit all assets & expenses and cr. credit all income, capital, all liability

(assets ) land value is deprecating so, deprication is an expense so, we Dr. deprication a/c expense is an increase (name the expense) and the value of land (assets) is diminishing Or depricating so, cr. land a/c