Dear Sir,
Our company engaged in contract work for this purpose we need manpower,equipement,stock yard etc. for fulfill this need we leased 40000 sq meter land includes two old buildings for 3 years . (in this building we are planning to accomodate site staffs and labours) these building need repair work for this case we are purchasing materials like- cement ,sand , plumbing items , electricals items , wall tiles, paints etc .
as per lease agreement total lease amount rs 18,00,000/- for 3 years
mutually agreed payment terms -6 Lacs for each year
My questions are
- How i treat this transactions ?
- Purchase of builindg repair items accounting
- Purchase of capital items for this builinding accounting
Thanks
Sabarinath
CAclubindia
