How to account for in Books

CA Sanjay Baheti (PROPRIETOR) (1155 Points)

23 March 2010  

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.