Accounting procedure for a construction company
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
17 February 2010
Hi,
I would like to know the procedure of accounting for a construction company. How to book the expenses spent on a particular project when the revenue has not been recognised yet? and what entries to be passed after the revenue recognition?
If any one can provide with the Balance Sheet & Profit & Loss format for a construction company, shall be gratefull.
Thanks
I would like to know the procedure of accounting for a construction company. How to book the expenses spent on a particular project when the revenue has not been recognised yet? and what entries to be passed after the revenue recognition?
If any one can provide with the Balance Sheet & Profit & Loss format for a construction company, shall be gratefull.
Thanks
CMA Ramesh Krishnan
(Expert)
17 February 2010
Construction company need to follow Accounting standard 7 for Revenue recognition and based on that Percentage of completion method need to compute the stage of completion and apply the percentage on the contract price
you need to maintain separate Billing and other details. But P&L & B/S as per Schdule IV Only
you need to maintain separate Billing and other details. But P&L & B/S as per Schdule IV Only
shakuntala chhangani
(Expert)
22 February 2010
Agree with Mr. Krishnan
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