Land

Land holds the cost of plots the company owns: the purchase price plus everything needed to acquire it, such as registration charges, legal fees and brokerage. Unlike every other fixed asset it is not depreciated, because land does not wear out, so its balance stays at cost until the land is sold or revalued. Nepal taxes gains on property disposal with advance tax of 7.5 percent after five years of holding or 10 percent sooner, so the cost recorded here is also the base for that calculation. Buying land through an Asset record with Calculate Depreciation unticked keeps it in the asset register for the auditor while leaving its value untouched. Land held to earn rent belongs under Investment Property.

Land balance = Purchase price + Registration and legal costs; no depreciation, so cost does not change.

1. 01Go to Stock > Item > New, tick Is Fixed Asset and set Asset Category to Land.
2. 02Go to Invoicing > Purchase Invoice > New, add the land item at the full cost including registration, and Submit.
3. 03Go to Assets > Asset; open the Asset created from the invoice and untick Calculate Depreciation.
4. 04Set Location and Available-for-use Date, then Submit the Asset.
5. 05Open the Land ledger from Accounts Setup > Chart of Accounts; the balance equals the plot's full cost.

Post when buying land through an Asset record linked to a Purchase Invoice or Journal Entry. Registration fees and lawyer costs are added to the cost.

Dr Land Rs 60,00,000, Cr Bank Account Rs 60,00,000 for a plot bought in Pokhara, including Rs 3,00,000 registration charges.