Treatment of advance money for building
This query is : Resolved
05 July 2014
Our company have applied for space in a building which is to be developed by a builder. we got the allotment of space therein. Now we are required to pay 12 installments for one floor space in the building which is under construction by the builder. The building will be ready for our use after 3 years at which time we will get the possessuon of the same. Now my question is whether the 3 installment money paid till 31.03.2014 should be classified in the books of Accounts as capital advance or the capital WIP. please suggest.
06 July 2014
Treat it as capital Advance only
.
.
as you not yet received any legal ownership rights on place
.
.
as you not yet received any legal ownership rights on place
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