24 September 2018
What will be the effect of expenditure on liabilities side of a balance sheet in balance sheet of a professionals incurred on construction of a building which is not fully constructed & shown as capital work in progress ? What will be its effect on capital account of a professional or a sole proprietor? On assets side all such expenditure will be capitalised & be shown under the head Fixed Assets under sub head Capital work in progress but how it will be treated on liability side of a balance sheet? Pls help. However for a NPO such expenditure is shown in the balance sheet sa capital work in progress on assets side as well as such expenditure is added back to capital fund but for a profit making business how such expenditure shall be treated on both side of balance sheet.
CAclubindia
