dear sir,
I have a client having business of property dealing. it had started business in FY 2011-12.
Procedure of business is that " Assessee takes amount in advance and gives offer to his client whether take the amount with interest or take a property after maturity i.e. after 1 year or 2 year.
now problem is that if a custemer gives advance today althogh we have cash balance throgh which we can incure administrative expenses but we are booking it as sell. in this case company final accounts is showing big loss.
i want to know whether this treatment is correct or there is any other way of accounting.
CAclubindia
