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shivani

student

210 Points Posted on 28 July 2020

what's the point to be considered during accounting of construction business (Partnership firm)??

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Quick Summary

For construction businesses operating as partnerships, understanding key accounting principles is vital. While there isn't a separate standard specifically for construction contracts, IndAS 115 provides the framework for revenue recognition. For partnership firms, revenue should be recognised according to AS, with standard partnership accounting practices applied thereafter.

yasaswi gomes

My grammar is 💯 good I

7306 Points Posted on 28 July 2020

As of now, there is no separate standard for construction contracts because IndAS 115 prescribes the accounting treatment for construction sector as well. Since your company is partnership, just recognise revenue as per AS and the rest is partnership accounting,