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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.

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

I Agree with Linesh..Thank you Sir.

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

Linesh Is right ...

 In construction time we take all material as expenses, after construction transfer to respective assets ……..

Thank you for all  

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.

thanx  2 all 4 replying........

I AGREE WITH LINESH

 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

Can we claim depreciation when the asset is in Work in Progress

No depreciation can only be claim when it is put to use.