Real estate

This query is : Resolved

ABHISHEK CHATURVEDI (Querist)
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25 May 2011 Please give some light,
There is a real estate company,it incurrs cost on construction of buildings.How to record the direct cost like materials and all incurred specifically on a particular project? They are recorded as direct expenses or as WIP?

Akhil Agrawal

Akhil Agrawal (Expert)
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25 May 2011 Since It is a real Estate Company then after building they will be selling the building therefore the exp will be booked as an WIP.

If it is a developer who builds & then maintains the same building, then it will be a Exp.

ABHISHEK CHATURVEDI

ABHISHEK CHATURVEDI (Querist)
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26 May 2011 so it means all the purchases will be booked as wip!