Post by MS INYOFU (@theconscience)

ACCOUNTING HINT (TODAY)

Mistake: Recording full land sale as profit

Correct: Separate cost of land from selling price

Example:
Buy land N5m, sell N8m
Profit = N3m (not N8m)

Entry:
Dr Cash N8m
Cr Land N5m
Cr Profit N3m

Why: Shows true gain, not inflated income

Do you separate cost from profit in asset sales?

ACCOUNTING HINT (TODAY) Mistake: Recording full land sale as profit Correct: Separate cost of land...

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