11 July 2012
A company started construction of labour quarters in its premises and in the balance sheet for the year ending 31/3/2011 was shown as Capital WIP.During the financial year ending 31/3/2012 there was no addition in capital WIP due to dispute with labour and as per the explanation from management construction will start in the year 2013-14. so how the above matter should be taken care of in accounts for the year ending 31/3/2012.
12 July 2012
The amount should be shown under Capital WIP in the year ending 31/03/2012 also. You have with you the explanation from the management. Pls take one written explanation from the management in this respect.
CAclubindia
