Question

freehold premises in accounting​

Answer 1

Answer:

Free hold premises is Asset

Explanation:

Free hold premises is Asset for us

It's Treatment is just like other fixed Asset.

it is appear in balance sheet only

it can be depreciate and it's depreciation goes to Profit & Loss Account

Basically Free hold premises means

a property in which no one holding is

available

Explanation:

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Answer 2

The meaning of the term freehold premises in accounting is:

• Freehold premises can be defined as an estate that is 'free from hold'  of any other person other than the owner.
• Son in this case, the owner of such an estate enjoys the feature or free ownership for perpetuity and he can use this premises in the way he likes in accordance with the local rules.
• The sale of freehold premises doe does not require state consent and so in this way, it requires lesser paperwork than when compared to leasehold premises.
• In the accounting process, it is considered an asset and is written on the asset side of the balance sheet.
• The value of the freehold premises does not remain the same and so adjustments like appreciation and depreciation require to be carried out in the value of the freehold premises.

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