Cwip accounting

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27 Points Posted on 30 August 2021
Can vendor advance be treated as Capital work in progress (CWIP)?
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On 30 August 2021 at 19:31 Report
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This discussion clarifies that vendor advances cannot be treated as Capital Work in Progress (CWIP) in accounting. CWIP involves specific accounting entries for opening WIP, input, and overheads. Instead, vendor advances are correctly classified as a current asset.

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My grammar is 💯 good I
7306 Points Posted on 30 August 2021

No capital work in progress is debit

opening WIP 

inventory input

overheads

finished WIP 

then credit 

cogs

then the difference is brought down to debit as this ledger is nominal in nature. 

The advance will be a current asset only.

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On 30 August 2021 at 20:12
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Chartered Accountant
24588 Points Posted on 30 August 2021
No...
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On 30 August 2021 at 22:02

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