11 November 2008
Hi Pls help me to in the folowing issue
My company is a trading company and it is having projects also.Majorly air conditioning projects each project may take years to compleate and 60 % of the project will be the inventory cost and 40% for instalation charges. i would like to know, the accounting policy can be adopt for. presently while issuing the materials it is considered as Sale. i belief if we choose contract accounting, the invoicing should not afect sales account. Pls let me know in detail how the contract accounting works under this siuiation.
CAclubindia
