Accounts of construction co

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 July 2012 If a person who is into construction business incurs certain expenses at site such as architech fees, security expenses though actual work at the site has not yet started, weather to keep these expenses under loans and advances head or to be shifted to development expenses and taken in closing work in progress

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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05 July 2012 Expenses related to the actual works can be treated as Work in progress, such as Architect fees. but admin charges like security expenses will be treated as indirect expenses and debit directly to pre operative expenses and write off once the operation starts.

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