My company is constructing building in Gurgaon and assign work to serveral contractors for constuction, electrical etc. My question how to book the expenses of contactors they are giving us running bills not final bills and final bills are expected to come when work completed may be next year. If company is putting capital expenditure then how to book it and running bill of contractors? Also give the accounting entries in detail . Thanx in advance
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Regarding how to record CWIP
Replies (2)
You should debit all expenses related to building construction to CWIP account and when the construction will be completed transfer CWIP a/c to Building account.
| Originally posted by :Rajesh | ||
| " | You should debit all expenses related to building construction to CWIP account and when the construction will be completed transfer CWIP a/c to Building account. |
" |
Thanx for your valuable response
Need for clarification in this regard
what will be accounting entries and their group i.e. effect in B/s and P&L?
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