Urgent query

As the purchase of materials for building construction comes under asset you can account the total purchase in asset.

YOU CAN TREAT IT AS CAPITAL WORK IN PROCESS          

MOREOVER INTHIS NO DEPRECIATION WILL BE CLAIMED AS IT IS NOT IN USE DURING THE YEAR ENDED 

only the consumed material will be capitalized unused material can not be capitalized.if the material is specifically purchased for the building then unused material is to scrapped and loss on sale of scrap(if can be sold) or total loss will be debited to P&l.

matrial conbsumed till date is capitalised as CAPITAL WORK IN PROGRESS under Fixed Asset

balance should be shown as stock of material in current asset.

when the material is used in next year then it can be capitalised in that year

agree with ragnikant

also agree with rajnikant

plz sent me revised schedule VI in Excel formet for preparation of companies` account for F.Y 2010-11

ONLY CONSUMPTION SHOULD BE ENTERED TO WIP

Hey Manik ...........

Only the material that you consumed in the current year should be capitalised in the head of Fixed Assets & sub head of  Capital WIP and the rest of the material is not capitalised in this year so it should be shown under the head of current assets as stock.

The rest of the material is shown in the balance sheet when it is capitalised in the next year....

Regards & God Bless You.................

only consumption is in wip

According to AS 10, whatever   additions made to the building during the year (that is purchase of Materials) shall be debited to Capital Work-in-progress and should be shown in Balance sheet and Capital Work-in-Progress and no depreciation can be claimed on such Building .

matrial conbsumed till date is capitalised as CAPITAL WORK IN PROGRESS under Fixed Asset

balance should be shown as stock of material in current asset.

when the material is used in next year then it can be capitalised in that year