Aman 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 if accountant record it at market price
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Answer:
deprication a/c Dr. 30,00,000
To land a/c 30,00,000
Explanation:
deprication is expense so, according to modern rules of accounts Dr. debit all asests & expense and cr. credit all income, capital, all liability
(assets ) land value is deprecating so, deprication is expense so, we Dr. deprication a/c expense is increase (name the expense) and the value of land (assets) is dimnishing Or depricating so, cr. land a/c
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