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Ye question As 10 ka h ? Konse year ke mtp/rtp me milega
Accountancy
A company has debited the Building Account with the Cost of the Land on which the building stands and has provided depreciation on such total cost. Comment on the accounting treatment
Answers (3)
Land and building should be recorded separately because land is not depreciable, whereas buildings are depreciable assets. Combining the cost of land with the cost of the building results in an inaccurate depreciation expense since land does not lose value over time.
