Residential copmplex accounting

This query is : Resolved

SOWMYA (Querist)
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04 May 2013 ACCOUNTING OF RESIDENTIAL COMPLEX BUSINESS

HOW TO ACCOUNT THE FOLLOWING IN THE TALLY

1. COMPANY HAS FEW ACRES OF LAND. IT HAS MADE PLOTS OF LAND AND IT ENTERS INTO THE FOLLOWING TRANSACTIONS: FIRSTLY IT SELLS THE LAND AND THEN ENTERS INTO CONSTRUCTION AGREEMENT.

MY QUESTION IS HOW TO SHOW THE EACH PLOTS IN THE TALLY

IS THE FOLLOWING TREATMENT CORRECT:
A. FOR THE PURCHASE OF ACRES OF LAND :SHALL I TREAT THEM AS PURCHASE OF STOCK.

B. FOR THE PLOTS MADE AND SOLD THEREON :SHALL I CONSIDER THE PLOTS AS THE FINISHED UNITS FIRSTLY. AND THEN MAKE A SALE ENTRY FOR THE PLOTS SOLD.

C. FOR THE CONSTRUCTION AGREEMENT :ACCOUNTING THE CONSTRUCTION AGREEMENT AS PER AS 7 CONSTRUCTION CONTRACT.

PLEASE ANSWER THE QUESTION AS SOON AS POSSIBLE, PLEASE
I WILL HELP ME VERY MUCH
THANKS IN ADVANCE.

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

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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18 June 2013 Yes you are correct. You can allot plot number and in the name of plot number you can open account and pass on the debit and credit the first two entries are also correct.