Go AD-Free with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

Real estate transaction

BHAVNA BISHT (STUDENT) (42 Points)

19 May 2017

ACCOUNTING TREATMENT OF REAL ESTATE TRANSACTION i.e. in balancesheet & Profit & loss a/c. if their is any specimen available for that please provide.

Reply
Follow
Share

9 Replies

mudasir (seniour Auditor) (35 Points)
Replied 19 May 2017

First of all u have to consider the nature of trans

Upgrade to CAclubindia Pro. Subscribe Now!

BHAVNA BISHT (STUDENT) (42 Points)
Replied 19 May 2017

Treatment of Development Expenditure in P&L and Balance Sheet?

mudasir (seniour Auditor) (35 Points)
Replied 19 May 2017

AS 26 applies

mudasir (seniour Auditor) (35 Points)
Replied 19 May 2017

The expenditure should be capiatlised..ie.Asset act Dr. to bank

BHAVNA BISHT (STUDENT) (42 Points)
Replied 19 May 2017

Assessee is in the business of Sale and Purchse of Land i.e. as a Stock in trade.So give us the Treatment of Development Expenditure which is being incurred in different stages by them in balance sheet and p& l. (As per AS-7,POCM is applied)

Upgrade to CAclubindia Pro. Subscribe Now!

mudasir (seniour Auditor) (35 Points)
Replied 19 May 2017

yea As 7 applies but datz related to construction contracts where u have to ascertain the revenue from construction contracts but in ur case it itz not a construction contract itz the real estate(stock in trade) business where u have to exactly deal with it as if it is normal trading business.
moreover yes As 26 wont apply in ur case as i thought ur business has generated asset and u wanna knw about expenditures incurred on it.

Now with regard to expenditures incurred on ur stocks u have to capitalise them if they expen is very much heavy otherwise charge it to pl