Journal entry

1) WIP (construction) a/c Dr 10000 To Cash a/c 10000 2) Goods a/c Dr 49500 Input Vat a/c .Dr 500 To Sundry cr (cash) 50000 3) Land a/c Dr Rs.100/- To Profit & loss a/c Rs.100/- (Being land received at free of cost then such fixed asset should be recorded at nominal value as per AS-12) T

1. Construction WIP a/c                    Dr. 10,000

                  To Cash a/c                                                    10,000

2. Goods Purchases a/c                     Dr. 49500

     Input Vat a/c                                      Dr.      500

                   To S. Creditors/ Cash/ Bank/ B/R a/c           50.000

3. Land  a/c                                            Dr.     100

                 To P & L A/c                                                         100

.

 

 

	Dr	Cr
WIP Buildings A/C Dr	10000
To Cash a/c		10000
Purchase A/C Dr	49500
Input Vat A/C  Dr	500
To Creditor/Vendor/cash/bank		50000
Assets/land A/C	500
To P&L A/C		500

 

If construction is complete then- Building A/c Dr. 10000 . To Cash/Bank A\c 10000 if still in Wip then- WIP A/c Dr. 10000 . To Cash/ Bank a/c 10000