krunal patel (Student) (252 Points)
28 May 2016
Anshul Mittal
(Freelancing)
(741 Points)
Replied 28 May 2016
BAnk A/c Dr. 10,00,000
to Loan From Bank a/c 10,00,000
(Loan Taken)
XYZ Construction a/c Dr. 500,000
To Bank 500,000
(For Advance)
Land a/c Dr. 15,00,000+90,000+2500+15000
To XYZ Construction a/c 15,00,000
To Cash/Bank 90,000+2500+15000
(Purchase of land, expenses incidental to such purchase are part of cost of fixed assets)
XYZ a/c Dr. 10,00,000
To Bank 10,00,000
(Payment for rest of amount)
I Hope am clear and correct.
krunal patel
(Student)
(252 Points)
Replied 28 May 2016
THANK YOU SO MACH FOR THE REPLY...CLEAR MY ALL DOUBT
prem kanna
(2 Points)
Replied 23 November 2018
What is the accounting treatment of Registration Charges in case of purchase of Land by Construction Company?
lucky Sharma
(2 Points)
Replied 30 November 2021
Hello sir,
Please tell me some entries for :-
1) Buy a plot (plot A)
2) Construction a building on plot (plot A)
3) Received advance from XYZ gainst for selling this plot with building
4) Received all amount after some days through bank
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 30 November 2021
THIS NEEDS TO BE FOLLOWED THROUGH REVENUE RECOGNITION SATANDARD. HOWEVER, FOR A GIST
LAND A/C
TO INVENTORY A/C
AND WHEN CONSTRUCTION STARTS
ALL EXPENSES A/C
TO BANK A/C
AND WHEN YOU RECEIVE ADVANCE
BANK A/C
TO DEFERRED REVENUE A/C -> BUT YOU MUST FOLLOW STAGE OF COMPLETION REVENUE RECOGNITION. IMAGINING ALL OF THIS HAPPENED WITHIN ONE YEAR,
WHEN YOU HANDED THE PLOT TO ABC,
DEFERRED REVENUE A/C
BANK A/C
TO SALES
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 30 November 2021
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