Doubt

capitalisation will be done after the receipt of bill  from party on paying advance debit advance itself 

receipt had been received. but no progress of the work has been notified

Show it as Capital Work-in-progress

Agree with CA Maulik. Show Rs. 200,000/- in Capital WIP and after completion of work transfer Rs. 200,000/- along with payment of Rs. 100,000/- to Fixed Assets.

You have to debit Mobilisation advance a/c only when you pay advance.

Only after getting Running account of the work done duly certified, the same can be taken to WIP  and when the work is fully completed the same may be transferred to Fixed asset a/c.

For transferring to Fixed asset a/c you need to get the Installation certificate, as from this date you have to calculate depreciation.

Thanks,

Viswanathan.C.P

thanks to all .

but can u give me the relevant accounting standard or guidelines or any interpretation  for the same .....