Morning All,

I ran into a problem (I think).

Our business bought a erf which we will build a house on and sell it. We have been advised that this does not fall under Investment property
as the land will be seen as "stock", this will be part of our cost of sales as we bought this to develop and sell on, we also claimed VAT on the purchase
as with any other stock.

My question is, do I book the Land purchased for development to a COGS account or an asset account? We borrowed funds from the bank, so I booked it to
COGS and the liability to the mortgage Liability account.

Please would anyone let me know if I did it correctly?