Flat Sale Recognization

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This query is : Resolved

kuldeep (Querist)

24 July 2011 Dear All,

plz give me performa of Flat Sale Recognization By Builders, & Closing Stock.

1.Land
2.Construction
3.Development Cost

plz give me performa & details.

Very Urgently required.

because my company balance Sheet finalization.

Thanks

Nitin Lakhmani

Nitin Lakhmani (Expert)

24 July 2011 When builder sale or ready to sale in consideration money reaceived or to be received
or
sale deed exceuted
or
Advance payt deed known as "BANA KHAT KARAR"
which ever is earlier is legal date of sale of flat for builder.

possation of flat given or not will not matter unless that deed get cancelled.

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Answer 2 ( About valuation of closing stock)

i) Valuation should be done on basis of work completed & certified by engineer.

ii)In that valuation you need to consider all direct cost incurred

iii)
a>>>
If you r developimg land which is not registered on your name or you have land under DEVELOP AGREEMNET then need to show lan in your balance sheet under curret assets untill you sale flat.

b>>>
orelse in other case If you are owner of land then you need to show it in your closing stock only if flat is CONSTRUCTED & READY TO SALE, orelse you need not to take it in valuation.

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