Construction business

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Querist : Anonymous

Querist : Anonymous (Querist)

24 March 2013 Where to show land Purchased in a Construction Business??? Do we have to debit it to P&L a/c ????

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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24 March 2013 You are saying it is construction business. So if you purchased land as stock in trade then treat it as Purchases and give debit to Trading account. In case if you held it as investment then disclose it under fixed assests.

OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

25 March 2013 What about Advances Received for Flat Booking?? where to show it ??

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Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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26 March 2013 Treate it as Advance received for Flat sale and disclose it under other current liabilities or other non-current liabilities at the balancesheet. As on the date of registration of property on the name of buyer then transfer this amount to sales account.

OM SAI SRI SAI JAI JAI SAI

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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08 April 2013 Land is to be debited to P & L A/c and the advances received as liability till sale deed is not registered. After registration of sale deed the same is to be transferred to P & L A/c as sale proceeds. This is to be done when the project is shown on percentage of work completed method. If it is on project completion method then the entire sale is to be booked in the year of completion and other things remains the same.