Building was capitalised 5 years before and it has been depreciated for half of its life. after 5 years, as a settlement, substantial amount is not to be paid to the supplier which was capitalised originally.
Amount which is no more payable to supplier, how should we do the accounting adjustment-
1. can we take as an other income in Profit and loss account of curent period
2 or we should adjust the building value downward and future depreciation is reduced.
3. or last 5 years over depreciation is reversed in current year and …