banner_ad

AS-7

This query is : Resolved 
Profile Image

Profile Image

(Querist)
09 December 2009 Hi all
How to value closing working progress under AS-7. Under percentage of completion method total contract price X % of work done becomes the Contract revenue. Then how the closing work in progress will comes to picture.
What is the accounting entries for recognizing contract revenue under the % of completion method?
Profile Image

Bhaskaran Chackrapani Warrier

Profile Image

Bhaskaran Chackrapani Warrier (Expert)
09 December 2009 In the referred situation no need to value WIP. Closing WIP will come into picture only when construction is not started. For example, project is announced for which land has been purchased and no construction work has been started, then cost of land has to be shown as WIP.

Accounting entry is:-
1) Bank a/c Dr xxxxx
To Sundry creditors A/c xxxxx
(Being advance amount received
from awarders.)
2) Sundry debtors a/c Dr xxxxx
To Contract income a/c xxxxx
(Being contract income recognized
as per AS-7).
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details