Accounting of construction partnership firm

1719 views 3 replies

A Partnership firm engagged in the business of plot sell & development .

Firm is started from 1st april, 2011, till 31st march, 2012 firm is received 6 crore as plot booking and firm spend money on land purchase and misc construction work of rs.12 crore.

Till 31st march, 2012 no agreement or any paper work done.

How to book sale...? which method is applicable fo accounting..? completeion of project method is applicable or not...?

 

Replies (3)

Even though AS-9 is not applicable as  it is a partnership firm,  receiving advances will not lead to any sort of

recognition of revenue as the plots to be sold are not yet marked,ready, and no binding agreement is entered  between parties. The advances are to be shown as liability only. No sales are to be recorded.

completed contract method if plot only sold and if whole amount recved accounting as per as 9

recognition of revenue as the plots to be sold are not yet marked,ready, and no binding agreement is entered between parties. The advances are to be shown as liability only. No sales are to be recorded.

Read more at: /forum/accounting-of-construction-partnership-firm-221015.asp?utm_source=newsletter&utm_medium=email&utm_content=forum&utm_campaign=nl_38_2012
recognition of revenue as the plots to be sold are not yet marked,ready, and no binding agreement is entered between parties. The advances are to be shown as liability only. No sales are to be recorded.

Read more at: /forum/accounting-of-construction-partnership-firm-221015.asp?utm_source=newsletter&utm_medium=email&utm_content=forum&utm_campaign=nl_38_2012
recognition of revenue as the plots to be sold are not yet marked,ready, and no binding agreement is entered between parties. The advances are to be shown as liability only. No sales are to be recorded.

Read more at: /forum/accounting-of-construction-partnership-firm-221015.asp?utm_source=newsletter&utm_medium=email&utm_content=forum&utm_campaign=nl_38_2012
recognition of revenue as the plots to be sold are not yet marked,ready, and no binding agreement is entered between parties. The advances are to be shown as liability only. No sales are to be recorded.

Read more at: /forum/accounting-of-construction-partnership-firm-221015.asp?utm_source=newsletter&utm_medium=email&utm_content=forum&utm_campaign=nl_38_2012
ecognition of revenue as the plots to be sold are not yet marked,ready, and no binding agreement is entered between parties. The advances are to be shown as liability only. No sales are to be recorded.

Read more at: /forum/accounting-of-construction-partnership-firm-221015.asp?utm_source=newsletter&utm_medium=email&utm_content=forum&utm_campaign=nl_38_2012

there is no sale transcation hasbeen complete, till the sale agreement all receipt as advance treated as liabiliteis and expenses incured on dovelopment of land or construction wiil be debit to work in progress a/c till the date of sale aggreent.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 30 June 2026
Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 24 June 2026
CA Article Trainee

Rahul Dang & Associates

Pune

CA Inter

View Details
Company
ARTICLESHIP 20 June 2026
Articleship

RB KESHRI & CO

Mumbai

B.Com

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
29 June 2026
ACCOUNTANT

SANDEEP AASHISH & CO

Araria

B.Com

View Details
Company
ARTICLESHIP 27 June 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
20 June 2026
Assistant Accounts Manager

Fintax Professionals

Gurgaon

CA Inter

View Details