06-01-2011, 06:02 PM
year 2007
we purchased land for totaling 16000000. and paid cash rs.9000000 remaining were paid in second year 2008. total land was 842 marlas. other development cost we paid in year 2007 were of 500000. commission on purchase of land was paid for 200000. registery expenses paid were of rs.100000. out of 842 marlas 452 marlas are been sold on installment totalling the revenue(cash receipt) of 3500000. now thing is am to prepare the trading account for tax purpose not from accounting view point so i am to use cash basis of accounting system? how will i value stock on hand for the year 2007 please prepare me a trading account keeping in view of tax basis..
we purchased land for totaling 16000000. and paid cash rs.9000000 remaining were paid in second year 2008. total land was 842 marlas. other development cost we paid in year 2007 were of 500000. commission on purchase of land was paid for 200000. registery expenses paid were of rs.100000. out of 842 marlas 452 marlas are been sold on installment totalling the revenue(cash receipt) of 3500000. now thing is am to prepare the trading account for tax purpose not from accounting view point so i am to use cash basis of accounting system? how will i value stock on hand for the year 2007 please prepare me a trading account keeping in view of tax basis..
