Construction business

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DHAVAL (Querist)
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15 August 2012 One of my party purchased plot in 50%
partnership of Rs.10 lacs
. it was showed in both of them account at Rs.5 lacs
Next year they started construction on that plot for residential flat.
for that purpose they opened a joint account under their personal name.
They got Rs.20 lacs as deposit of flat booking and all the expenses are made from that account

So
how to show in balance sheet the amount of deposit, expenses and joint a/c

Amol S Joglekar

Amol S Joglekar (Expert)
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15 August 2012 You need to write the accounts of the BUSINESS. The anomalies to be ignored and be regularised in due course of time. Ask them to decide the name of the BUSINESS. Open the current account. Make a deed of this Joint Venture and so on.

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DHAVAL

DHAVAL (Querist)
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15 August 2012 But it is for the FY 2011-12
they didn't make any deed

how to show in balance sheet for March-12 ?

DHAVAL

DHAVAL (Querist)
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15 August 2012 But it is for the FY 2011-12
they didn't make any deed

how to show in balance sheet for March-12 ?

Amol S Joglekar

Amol S Joglekar (Expert)
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15 August 2012 Make a deed right now stating the full disclosure facts. It should amount to RATIFICATION as is called under companies act. Then the things will be easy for the accounts writer.

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DHAVAL

DHAVAL (Querist)
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16 August 2012 can we show all the expenses, deposit and amount in bank a/c in both the party account @ 50%

Amol S Joglekar

Amol S Joglekar (Expert)
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16 August 2012 Yes. Make a preliminary MOU (Memorandum of Understanding between the parties so to do) As an accountant, then you can show it under the books of JV/AOP/partnership.. as the case may be.

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DHAVAL

DHAVAL (Querist)
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21 August 2012 ok thanks

Amol S Joglekar

Amol S Joglekar (Expert)
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21 August 2012 No mention please. Would like to help our fraternity always.

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