How to Record Land Parcel Acquisition
Records the purchase of land for future development or investment purposes, distinct from building structures.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Investment Property - Land | Asset | 2,000,000.00 | - |
| Cash | Asset | - | 2,000,000.00 |
💡 Accountant's Note
Land is recorded at cost, including purchase price and direct acquisition costs. Unlike buildings, land is not subject to depreciation.
Practitioner & Systems Framework
💻 ERP Architecture
Fixed Asset module using a non-depreciating asset class.
⚠️ Audit Flags
Inclusion of land in the depreciable building basis.
📄 Required Documentation
Purchase and Sale Agreement, HUD-1 Settlement Statement, and Title Deed.
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Discussion & Community Questions
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