Accounting for a real estate complex


The accounting writing of the purchase of a property complex involves to properly breaking it down into different categories. The purchase of the land will have to be accounted for on the one hand and the purchase of the building on the other, and the additional costs will have to be taken into account. A tedious task...
Accounting for land
When acquiring a real estate complex, a company must be able to identify which part of the purchase price actually concerns the acquisition of the land since this value will not be depreciable as opposed to the construction.
If the notary’s deed does not give any indication on this subject, the value of the land can be estimated by calling on a real estate expert or calculated by reference to the market price of similar land.
This amount will be recorded in a subdivision of the "211 - Land" account which will generally be” 2115 - Built Land”.
Accounting for a building
If you buy a building, you acquire a set of elements such as buildings, installations, fittings, etc. Three main accounts, all subdivisions of the "213 - Constructions" account will allow to record these data:
  • The “2131-Building” account will allow to account all the elements of the structure of a building (walls, floors, foundations, roofing). It will be important to decompose everything well since each element will have its own depreciation table
  • The account "  2135 - General installations, fixtures and fittings of buildings " will be used to account for the present installations (electrical, heating, telephone) as well as all the work carried out to ensure that the premises are in good working order . Again, it will be important to properly
  • The account " 2138 - Infrastructure works " allows to count the books to ensure the communications.

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