I have to decide whether these payments go under the land account or building account? I have a feeling neither of them go under the accounts, but just want to make sure.
Fire insurance premium payment
Asset write-up to proper value
Thanks!
To determine whether the payments should go under the land account or building account, we can consider the nature of the transactions.
1. Fire insurance premium payment:
In this case, the payment is for fire insurance coverage, which protects against fire-related risks and potential damages. Since fire insurance is typically associated with buildings or structures, it would be more appropriate to record this payment under the building account. This is because fire insurance is intended to protect the building against fire-related risks.
2. Asset write-up to proper value:
If an asset's value is adjusted or increased to its correct or proper value, it might indicate a revaluation or adjustment in the balance sheet. However, without specific context or further details, it is challenging to ascertain which particular account should be affected. The write-up could potentially impact either the land or building account, depending on the specific asset being referred to. It is important to review the documentation or consult with relevant experts to determine the appropriate account for such adjustments.
In summary, the fire insurance premium payment is typically recorded under the building account, while the asset write-up to proper value requires further context or information to determine the appropriate account.