Dear Siddharth,

In simple term Capital WIP means "ASSETS UNDER CONSTRUCTION/DEVELOPMENT"

Like a company is getting a Building constructed so till the time the construction is completed and asset is brought into existence all payments made in this respect will be accumulated under "Capital WIP"

It can be shown as a separate item on the face of Balance sheet but generally it is shown as part of Fixed asset as a separate item in the schedule.

Agreed with Amirbhai, Capital WIP is generally reflected in Fixed Assets.

Like for eg. "Office Building Site No. 1 WIP"

The payments for WIP will be reduced from the Bank a/cs (Assests side) and will be added under Fixed Assets in Assets side of B/Sheet.

Ayushraj slightly disagree on only Payments.....

We follow accrual generally....