Residential Complex Builders or Developers first year Balance Sheet

My query is regarding Residential Complex Builders or Developers first year Balance Sheet

According to Accounting Standard As7 Builders or Developers promoting the Residential Complex Profit is to calculate on Completion of the Project. In first Year of the Balance sheet where total Work is in Progress and Builders or Developers sale out the Flat based on 20% of the total flat value in Advance from Customers and balance to be received gradually on completion of the project. In that, circumstance how daily expenses incurred under the head indirect expenses (e.g. Salary, Traveling expenses, Electricity expenses, Telephone expenses , General Expenses etc.) in profit & Loss account is to be treated where sale is zero during the first year of the Balance Sheet. If, indirect expenses is to treated as expenses in profit & loss account, normally than Loss Balance Sheet is to be prepared.

Please suggest me the right procedure for treatment of Indirect Expenses in Profit & Loss account or Balance Sheet for Audit Purpose as per Accounting Standard/Norms for the above explained matter and if possible provide me the ready balance Sheet & Profit & loss for the Ready Reference .

Thanking you in advance.

Regards, Rakesh Agarwal

asked Sep 01 '12 at 14:13 by rakesh 1233

We don't have expertise on such matters. Please consult an experienced CA on this case.
(Sep 01 '12 at 16:22) Pankaj Batra

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Asked: Sep 01 '12 at 14:13

Seen: 12,105 times

Last updated: Sep 01 '12 at 16:22