What are the sale and purchase accounting journal entries for a construction contract business run under proprietorship entity ?
please refer this file to assess how to recognize the ampunt of revenue as well as cost under construction contracts.
https://www.caclubindia.com/share_files/as-7-construction-contracts-77210.asp
entry for revenue is
contractee a/c. Dr.
to contract revenue
(for amount of revenue please refer above file)
on amount received from contractee
bank a/c. Dr.
to contractee. a/c.
on amount incurred for the contract
contract. expditire a/c. Dr.
to bank a/c
https://www.caclubindia.com/share_files/as-7-construction-contracts-77210.asp
entry for revenue is
contractee a/c. Dr.
to contract revenue
(for amount of revenue please refer above file)
on amount received from contractee
bank a/c. Dr.
to contractee. a/c.
on amount incurred for the contract
contract. expditire a/c. Dr.
to bank a/c
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