Balance sheet

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 March 2013 Amount Paid for booking an flat in an under construction phase should be shown under which head in balance sheet

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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25 March 2013 Show it as Advance paid for Flat and diclose it under Assets side of balance sheet as other current assets or if you feeling property will be registred on your name after one year then treat it as other long-term asset.

On the date of property registered on your name then transfer this to the Flat acount and disclose it under fixed assets.

Journal enteries:

For making advance: As on the date of payment of advance

Advance for flat a/c dr XXXX
To Cash/Bank a/c XXXX
(Being advance amount paid for the purpose of purchase of flat to XXXX through r.no.XXX)

For transfering to Flat: As on the date of registration of flat

Flat a/c dr XXXX
To Advance for flat a/c XXXX
(Being flat purchased and title has transfered to use along with all ownership rights etc.... so advance paid for flat shall be recognised as flat purchased).

OM SAI SRI SAI JAI JAI SAI

Message likes : 2 times

Querist : Anonymous

Querist : Anonymous (Querist)

26 March 2013 Thank u sir

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