Contract accounting - contractee

In normal case cash paid is percentage of work cetified

As you pay cash will debited to assets a/c ie.

fixed assest a/c..................................Dr.

       To cash a/c

[note:-cash decreasing and assests increasing so effect will NIL in balance sheet and it will tally]

it should shaw in balance sheet as fixed assest wip and add to that type of asses

in your eg:

there is down payment i.e. before constructing assest

. ' .  I  hope so it should trated as payment in advance and debited to contractor's a/c and afterword it should adjusted from contractor's a/c.

now I thing so you can give ans of your Q but my ans is as follow

yr1  contractor's a/c...................Dr          100000

            To cash                                                          100000

[down payment]

yr1 Bulding a/c..........................Dr.           200000

            To cash a/c                                                  100000

            To contractor's                                             100000

[adjust contactor's a/c as will paid cash]

yr2 Bulding a/c .........................Dr.           100000

            To cash a/c                                                   100000

yr3 Bulding a/c .........................Dr.           100000

            To cash a/c                                                   100000