03 August 2010
I hav got a part time job(accountant) in new established pvt. ltd. company whose main business is promoting and development of land with 2 directors with equal stakeholding.They have purchased around 45 acres land and are going to start its development.Plz tell me how to start accounting of this company.Actually I m a ca student and have got first time this type of work.plz help me what will be the requirements from my side.I m referring company law,Income tax books to know how to start.plz reply.
05 August 2010
If the expenditure is being incurred for land development; then open on land development account and put all the expenditure there.
You can also open separate account for example wages, reti (sand), water charges etc. and when the work is over or if the work is still continuing; at the end of the year you can transfer all these expenses to Land Development Account.
In Balance Sheet it would be shown as Land and Land Development Account as an asset.
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