Booking of income in case of real estate
This query is : Open
28 December 2013
Hi Experts,
We are running our real estate business of selling commercial shops. We are an authorized agent between buyer and seller and it was also mention in sale deed that we collect whole sale consideration on behalf of seller.
We collect whole amount of sale consideration from buyer say(Rs850000/-) and paid to seller (say Rs 700000) and earn Rs 150000 as income. So whether we should consider it normal sale/purchase or consider an commission income. Also suggest me appropriate accounting income.
We are running our real estate business of selling commercial shops. We are an authorized agent between buyer and seller and it was also mention in sale deed that we collect whole sale consideration on behalf of seller.
We collect whole amount of sale consideration from buyer say(Rs850000/-) and paid to seller (say Rs 700000) and earn Rs 150000 as income. So whether we should consider it normal sale/purchase or consider an commission income. Also suggest me appropriate accounting income.
28 December 2013
you havent mention the nature of your business for which u provide agency business?
30 December 2013
We are running our real estate business.
30 December 2013
Kindly tell me the appropriate accounting entries also with relevant accounting heads.
Thanks
Thanks
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