hello friends.......
there is partnership firm of 6 partners doing business of sale of plots and developing those flats on contract basis.
they have sold around 85 plots. these all 85 plots were inherited, i.e. they got this through father's will.
all decided to sold these 85 flats by forming partnership firm. the total area of all these flates are 11,770 square meters. partners are entitled to get consideration of xxxxx square meters * Rs. 40/ sq. mt. to be credited to their respective capital account. excess consideration are credited to firms account i.e. as profit of the firm, which is to be shared on decided ratio among partners.
what should be the accounting treatment & entries to be passed.
these 85 plots were sold in differnt years. how to account for the unsold plots during the year.
should these plots be shown as "current assests" in balance sheet year by year????
CAclubindia
