Capital Advance

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Mumbai
143 Points Posted on 27 January 2022

Our Company has given capital advance to MR X for the construction of Building on 28.01.2021 and Now the MR X has submitted the bills for 1.65 Crores.

What is the Accounting treatment and Ind As entries.

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On 27 January 2022 at 16:15 Report
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This discussion explores the accounting treatment and Ind AS entries for a capital advance provided for building construction. The advance is to be adjusted against bills raised by the contractor, Mr. X, who has submitted invoices totalling 1.65 Crores. We will cover the basics of accounting for construction contracts and how advances are reconciled with payments and work certified.

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Profession
28271 Points Posted on 28 January 2022
Let's discuss the basics.
1. It's a construction contract.
2. advance given to be adjusted against a proportion of cash received and work certified.
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On 28 January 2022 at 08:53
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Chief Accountant
3150 Points Posted on 28 January 2022
Advance given to be adjusted against bill raised.
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On 28 January 2022 at 10:45
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Profession
28271 Points Posted on 28 January 2022
Whatever I hv told is in conformity with accounting standards.
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On 28 January 2022 at 22:57

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