Hi ,

QUESTION: yong and co sold its first house to wong. The selling price of the land was $225000 plus GST. The estimated cost of the house was $500000. The selling price of the house was $625000 plus GST. Overall, the selling price of the house and land was $850000 plus GST.

Wong agreed t the following payment plan:
Land: wong paid for the full cost of the land plus GST today, January 3 2012.
House: wong would pay for the full cost of the house on May 21, 2012.

My entry is :
Memo: I ignore the house transaction, because wong not pay today.

Land: Dr cash 236250, CR sale tax payable 11250, Cr Land

Please give a comment for my entry, because I want to record income, but I don't know how to make the entry. Because the P/L will show net loss, because without income, but my cash in...

Thanks and regards,
Miu

I think your entry is correct

Lets say you are having loss of 100000

JAN 3rd 2012 CASH DR 236250
Loss on SALE - Land DR 100000
SALES TAX CR 11250
SALES - Land CR 325000

Now I don't know what's the cost price of the land... How much Yong acquire the land for to calculate P/L

Hi, I think I'm missing one part of the question. Do you mind I send you thequestion by mail?

You can write your question here
Everyone will help you with answer

Quote:

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Originally Posted by ACCTGUY

You can write your question here
Everyone will help you with answer

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O OK.. no problem. Thanks for willing to help. I will upload the question again .