hello frnds.
what are the accounting entries to be passed for asset in construction and after construction?...thanx in advance.
C.A. LINESH PATIL
(CA)
(910 Points)
Replied 28 September 2010
1.At the time of construction capitaize all expensees towards constuction of assets to CAPITAL WIP.
2.when the construction gets over and assets is created then transfer CAPITAL WIP A/c to respective assets A/cs.
Manu.bujji
(Student)
(42 Points)
Replied 28 September 2010
Ya... linesh Sir you r right...working prooses time we r take capital wip,after complite the construction remaining assets r tranfer to respective assets A/C (Current / Fixed a/c) Thank you for Sharing Radhika & Linesh
SHWETA GERA
(Financial Services)
(938 Points)
Replied 28 September 2010
| Originally posted by : linesh | ||
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1.At the time of construction capitaize all expensees towards constuction of assets to CAPITAL WIP. 2.when the construction gets over and assets is created then transfer CAPITAL WIP A/c to respective assets A/cs. |
 |
Ragava
(M.Com)
(42 Points)
Replied 28 September 2010
| Originally posted by : linesh | ||
|
|
1.At the time of construction capitaize all expensees towards constuction of assets to CAPITAL WIP. 2.when the construction gets over and assets is created then transfer CAPITAL WIP A/c to respective assets A/cs. |
|
I Agree with Linesh
Mahesh
(M.Com)
(23 Points)
Replied 28 September 2010
Linesh Is right ...
In construction time we take all material as expenses, after construction transfer to respective assets ……..
Thank you for all
CA Finalist
(Article Assitant)
(289 Points)
Replied 29 September 2010
At the time of construction:
Capital WIP a/c Dr
To Bank a/c
After Construction:
Transfer of Capital WIP to respective Aseet a/c:
Asset a/c Dr
To Capital WIP a/c
Any revenue expenses after construction needs to be charged to P&L a/c and any expenditure of revenue type needs to be Capitalised again to the respective Asset a/c.
Santosh
(Student ( Final Year - New ))
(348 Points)
Replied 29 September 2010
| Originally posted by : linesh | ||
|
|
1.At the time of construction capitaize all expensees towards constuction of assets to CAPITAL WIP. 2.when the construction gets over and assets is created then transfer CAPITAL WIP A/c to respective assets A/cs. |
|
vijay
(Accountant)
(884 Points)
Replied 29 September 2010
All the expenses incurred for that particlular Assets should be capitalised by Dr all the paymnts incurred towards that assets to Capital WIP A/c
And as the assets get constructed transfer the balance in Capital WIP A/c to ............(said) Assets A/c
Harsha
(Chartered Accountant CS (Final))
(227 Points)
Replied 29 September 2010
Can we claim depreciation when the asset is in Work in Progress
C.A. LINESH PATIL
(CA)
(910 Points)
Replied 30 September 2010
No depreciation can only be claim when it is put to use.
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