About contraction exp and Construction value

My Company Going to Construction new swimming pool value is 500000 and paid as an advance 50% by bank mode

my question is how to enter these types of accounts, which head and all expenses too (purchase material, labor charge, food, equipment)please help me 

Replies (6)
Quick Summary
This discussion focuses on accounting for a new swimming pool construction project valued at £500,000, with a 50% advance payment received via bank transfer. It seeks guidance on entering these transactions, including the advance payment and associated expenses like materials, labour, food, and equipment. The advice provided covers journal entries for advances, adjusting them upon full payment, and classifying construction expenses as direct or indirect. It also details how to record receivables and sales upon invoice issuance and final payment, including GST implications.

Pass  Advance entry

Bank   A/c  Dr

To Advance Construction work   A/c  Cr

( being advance received  )

Adjust Advance when full payment  received

Expenses related  to construction  show  under Direct  Expense  and remaining show as Indirect Expense in 

Profit and loss Account  

how to pass journal entry receivable amount under which head???

 

When you issue Invoice after completing construction work pass receivable entry

Trader Debtor's A/c Dr
To Construction work (sales)
( Booking of sales entry)

when you receive balance payment

Bank account. A/c Dr
Advance const work A/c Dr
To Trade Debtor's A/c Cr
( payment received after advance adjustment)

If GST applicable create input and output leaders
show necessary debit , credit .

same entry for the part amount received  as per contract paper(50%,40%,10%)  when we make invoice

 

If you are receiving 50,40,10 =100% as advance payment then , same entry after Invoice , only adjustment entry , (Advance A/c Dr and Trade Debtor's A/c credit .)

thank you for your help sir

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