Sale of cwip
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
24 April 2013
Hi,
As we all know after completion of Project we transfer cost from CWIP to Respective Asset head.
what if before completion of that project I sale it from CWIP?
will it consider as Normal Sale?
or
Sale of Fixed Assets
Can anyone tell me exact accounting treatment for this?
Thank you.
As we all know after completion of Project we transfer cost from CWIP to Respective Asset head.
what if before completion of that project I sale it from CWIP?
will it consider as Normal Sale?
or
Sale of Fixed Assets
Can anyone tell me exact accounting treatment for this?
Thank you.
RAJU S NARAYANAN
(Expert)
25 April 2013
even in this case, you have to transfer from CWIP to asset account where the name of asset will be different.
19 May 2013
You cannot sale CWIP it can be transferred. If your are transferring CWIP then total consideration minus the cost is to be treated as business income. But after completion of the project you are selling this then it is always better to capitalize CWIP to various assets and then sale the assets and not CWIP
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