28 November 2015
DEAR, I AM A BUILDER AND I HAVE ENTERED A JOINT VENTURE CONTRACT WITH A LAND OWNER TO CONSTRUCT FLATS. OUR AGREEMENT IS TOTAL FLATS IN THE LAND IS 33, THEN WE HAVE OFFERED THE LAND OWNER TO 7 FLATS AND BALANCE 26 FLATS ARE OUR SALEABLE PORTION . MY DOUBT IS THE 7 FLATS ALLOWED TO THE LAND OWNER IS THE PART OF OUR SALES ? OR HOW IS THE TREATMENT OF 7 FLATS IN THE BUILDER ACCOUNTS?
28 November 2015
you are giving 7 flats to owner as a sale consideration for purchase of land and the construction cost of such flats will be allowed as expenditure to you(Builder Account).
28 November 2015
then it is compulsory in the builder accounts land cost is accounted as expenditure ???? how many flats sales is accounted as sales, ie 33 flats or 26 flats ???
28 November 2015
At the time of registration of undivided share of land to 8 flat owners. Flat construction ac Dr 160 lacs to land owner ac Cr 160 lacs (8* 20 lacs) At the time of handing over of 2 fkats to land owner. Land owner ac Dr 160 lacs to construction ac Cr 160 lacs. (2 flats cost excluding land, land already with owner)
CAclubindia
