How to account for in Books

Drae Experts,

My Four Clients being Individuals engaged in Construction of  residential tenaments/Row Houses for their self occupied purposes. Each individual is assigned to construct 7-8 Houses as developer for which  a development  agreement is made between deloper & Land Owner(i.e.Member).each land owner is acquired  his residental Plot by way of  registered Sale deed seperately. Each Developer has given estimated constructed cost to each member.Developer is getting progressive payments towards said construction cost from each member.The relevent work has started in Feb,2010. All bills related to direct cost are taken in the name of Developer.(viz.Matikam,sands,Bricks, Cements,Steels etc.)

My Query is How such expenses/ progressive payments are to be booked in the books of each Developer (i.e. either as WIP/ Advance from Members till completion of house property or otherwise manner.

Please Advice.

Replies (1)

Dear Sanjay Sir,

Regarding recognition of revenue & costs are concerned plz go through AS-7 Construction Contracts & Guidance note on Real Estate Developers.

Further, I think U have to check the exact nature of this consortium in the lights of AS -27 Financial Reporting of Interest in Joint Venture.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details
Company
ARTICLESHIP 17 October 2026
Articled Assistant

RRPM & Associates LLP

Chennai

CA Inter

View Details
Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details
Company
08 October 2026
SALES TELECALLER

HIRE NOVA

Lucknow

Graduate (Any)

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details