Real estate transaction

First of all u have to consider the nature of trans

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

AS 26 applies

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

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)

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

i will share link with you for insight knowledge ..

or u might have to charge all exp to pl a/c

THANKU SIR...PLEASE SHARE THE LINK..