Accounting of construction partnership firm

1720 views 3 replies

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.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
06 July 2026
Chartered Accountant (Indirect Taxation)

Gowra Ventures Pvt Ltd

Hyderabad

CA

View Details
Company
24 June 2026
Senior Account (VA Client Operations)

Karbon Business

Bengaluru

CA Inter

View Details
Company
29 June 2026
ACCOUNTANT

SANDEEP AASHISH & CO

Araria

B.Com

View Details
Company
05 July 2026
Financial Controller

NovumLake Partners

Mumbai

CA

View Details
Company
22 June 2026
Finance Manager- Chartered Accountant

Triveni Turbine Limited

Bengaluru

CA

View Details
Company
06 July 2026
C.A./CA Inter OR pursuing C.A./GST/Accounts/Audit/IT - Head

Arvindkumar Maniar & Co.

Rajkot

CA

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
ARTICLESHIP 07 July 2026
Articleship

Jawahar and Associates Chartered Accountants

Hyderabad

CA Inter

View Details