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construction head

AS 2116 views 2 replies

GANESH KUMAR KASHYAP

Private Job

206 Points Joined September 2012

Dear sir,
I'm accountant of real estate company & maintain construction accounting in college, but some expenses head not clear. please help me.
A payment for soil for ground leveling in college. what is LEDGER head & is it expense or assets.

thanks as advance for reply.

Replies (2)

CA Tanvi Sheth

Consultant

232 Points Joined March 2016

Hello,

As per your query what i understood is you want to know the account head for soil bought for ground levelling.

If the college is constucting a new building then capitalize the cost. If not, then debit it to Ground levelling exp, and clasify it as indirect expense.

Thanks,

Tanvi