Building Construction Accounting

Please pass entries of transactions occurring based on date. 

Land first

Contributions

Purchase of raw materials

Payables

and clearing payables.

once construction is over, it is an asset recognise or carrying amount of PPE increases. Remember the depreciation rule, an asset is depreciated from the first day it is put to use, similarly, PPE is recognised when it is fully constructed and ready to be put to use. All the best.

Land a/c 1,00,00,000₹

To bank a/c 92,00,000₹

To Charity funds a/c 8,00,000₹

when land purchased

Contract expenses a/c

To Bank/cheque a/c

If trust arranged money on loan, capitalise it by

Borrowing costs Asset a/c

To Interest expense a/c

plz provide entry for constrction expense