Sample Flat Cost

Radhika Singhal (ARTICLE) (55 Points)

08 May 2011  

Hi Friends,

My client works in a real estate business. His practice is to add the cost of sample flat in cost of project. The sample flat will be demolished after completion of project and in that area club area will be build up for residents residing there. I want to know whether that cost is a part of cost of project or it will affect the profit and loss account of client. Please explain the treatment thereof or any guidelines issued by institute??

 

 

Thanks