Accounting Treatment of Purchase of Under Construction Flat
This query is : Resolved
CA. Aditya Goel
(Querist)
20 January 2022
Mr. A Pays INR 1 Lakh to Builder ABC for a flat which is getting constructed.
MR. A gets Allotment letter and buyer builder agreeement
total flat value is 2 lakhs.
what shall be the accounting treatment?
whether 1 lakh paid will be treated as advance or full 2 lakhs will be recorded as Fixed Asset and 1 lakh payable to the builder.
MR. A gets Allotment letter and buyer builder agreeement
total flat value is 2 lakhs.
what shall be the accounting treatment?
whether 1 lakh paid will be treated as advance or full 2 lakhs will be recorded as Fixed Asset and 1 lakh payable to the builder.
CA Puja Sharma
(Expert)
20 January 2022
Treat Rs. 1 Lakh paid as an advance.
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