Accounting of construction partnership firm

A Partnership firm engagged in the business of plot sell & development .

Firm is started from 1st april, 2011, till 31st march, 2012 firm is received 6 crore as plot booking and firm spend money on land purchase and misc construction work of rs.12 crore.

Till 31st march, 2012 no agreement or any paper work done.

How to book sale...? which method is applicable fo accounting..? completeion of project method is applicable or not...?

 

Replies (3)

Even though AS-9 is not applicable as  it is a partnership firm,  receiving advances will not lead to any sort of

recognition of revenue as the plots to be sold are not yet marked,ready, and no binding agreement is entered  between parties. The advances are to be shown as liability only. No sales are to be recorded.

completed contract method if plot only sold and if whole amount recved accounting as per as 9

recognition of revenue as the plots to be sold are not yet marked,ready, and no binding agreement is entered between parties. The advances are to be shown as liability only. No sales are to be recorded.

Read more at: /forum/accounting-of-construction-partnership-firm-221015.asp?utm_source=newsletter&utm_medium=email&utm_content=forum&utm_campaign=nl_38_2012
recognition of revenue as the plots to be sold are not yet marked,ready, and no binding agreement is entered between parties. The advances are to be shown as liability only. No sales are to be recorded.

Read more at: /forum/accounting-of-construction-partnership-firm-221015.asp?utm_source=newsletter&utm_medium=email&utm_content=forum&utm_campaign=nl_38_2012
recognition of revenue as the plots to be sold are not yet marked,ready, and no binding agreement is entered between parties. The advances are to be shown as liability only. No sales are to be recorded.

Read more at: /forum/accounting-of-construction-partnership-firm-221015.asp?utm_source=newsletter&utm_medium=email&utm_content=forum&utm_campaign=nl_38_2012
recognition of revenue as the plots to be sold are not yet marked,ready, and no binding agreement is entered between parties. The advances are to be shown as liability only. No sales are to be recorded.

Read more at: /forum/accounting-of-construction-partnership-firm-221015.asp?utm_source=newsletter&utm_medium=email&utm_content=forum&utm_campaign=nl_38_2012
ecognition of revenue as the plots to be sold are not yet marked,ready, and no binding agreement is entered between parties. The advances are to be shown as liability only. No sales are to be recorded.

Read more at: /forum/accounting-of-construction-partnership-firm-221015.asp?utm_source=newsletter&utm_medium=email&utm_content=forum&utm_campaign=nl_38_2012

there is no sale transcation hasbeen complete, till the sale agreement all receipt as advance treated as liabiliteis and expenses incured on dovelopment of land or construction wiil be debit to work in progress a/c till the date of sale aggreent.

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