Rudrayani Shedjale (Assistant Accountant) (751 Points)
26 February 2019while making cost sheet for a particular project, salary of accountant/purchase/director should be allocated to that project whereas accountant never visit the site.also audit fees, interest paid to bank on overdraft account,profession charges etc should be allocated each project with some percentage? if yes should i collect all these expenses under administrative overheads ?
please advise.
Rakesh Bandal
(Self Employed and Agriculture)
(1349 Points)
Replied 26 February 2019
If for Construction Contract/Project or any other engineering project
allocation should be
1. for interest on bank loan/OD - specific to project or used for more than 2 project then according to constructed area or total value of contract
2. for other all admin expenses - constructed area or total value of contract
Rudrayani Shedjale
(Assistant Accountant)
(751 Points)
Replied 27 February 2019
means if one project is of Rs.12Cr & other is of 10Cr. & interest charges are Rs.20lakhs how should be the proportion of this amount?
Rakesh Bandal
(Self Employed and Agriculture)
(1349 Points)
Replied 27 February 2019
if not specifically taken for single project then
considering project duration be same or not much different then 10.91 for 20 cr project and balance for another
this is general bifurcation , you can follow other process also
Rudrayani Shedjale
(Assistant Accountant)
(751 Points)
Replied 27 February 2019
sir how did you calculate this 10.91 amount?
Rakesh Bandal
(Self Employed and Agriculture)
(1349 Points)
Replied 28 February 2019
20 / 22 X 12 = 10.91
Rudrayani Shedjale
(Assistant Accountant)
(751 Points)
Replied 28 February 2019
means you have divided total cost of interest charges of Rs.20lakhs by total project cost 10cr+12cr?
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