Query

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 October 2014 hello sir, a contractor has done some percentage of his total contract work in current year.The bill for the work done has been raised in the current year.How shall we treat it in income and expenditure account and balance sheet. for example out of 17 crores work he has raised bill for 4323439(work done in current year) how shall we treat in balance sheet and income and expenditure account. pls help me out

Ganeshbabu K

Ganeshbabu K (Expert)
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27 October 2014 If work given to contractor is for construction of any capital asset,

and for the portion for which he has completed work....
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may be debited to Capital work in progress to the extent for which bills submitted by contractor which may be supported by work completion certificates.
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May be debited to fixed asset if part of portion completed was identified seperately and will be usable seperately
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If it is revenue in nature need to know indetail about the transaction and correspondingly it is required to be recognised