@rosh_unb3944 for VAT check the video. How do journal entries for construction contracts 👉 ua-cam.com/video/R073fM5ykFo/v-deo.html vat is paid on tax invoice value even moblization advance received vat is charged that time and later on that amount is deducted and on net amount vat is charged for detail go through this video
thanks - I just re watched - you mean in the last of video - its typo error please consider that as 30K not 300K debit side is correct on credit its written 300k instead of30k
Can you please tell me if i post entry for project expenses in cip account and material expenses on purchase or materials account, will there be a double entry?
@@maqbool-urrehman4760 CIP Less Billing is your Contract or Liability . we are Deducting the CIP "TO DATE " and Billing "TO DATE" this means that effect is already there. @12:33 (P.S Reversal : I Assume you are confused with my other video " How to Do Accounting for Construction contracts" in that Video in have did one reverse entry because income was being doubled that was quite different scenario ) If you want to understand the difference of recognizing income in the video ua-cam.com/video/UgQRczsFuG4/v-deo.html VS ua-cam.com/video/6jNQiwHqXOE/v-deo.html & (Above) --- ua-cam.com/video/UgQRczsFuG4/v-deo.html ----> Work done / Certified =billed to customer (offcousre advance is something else ) ( in practical life mostly the contract are based on invoiced as work done but it can be otherwise ) ----ua-cam.com/video/6jNQiwHqXOE/v-deo.html & (Above).-------> Work Done > or < billed to customer I hope it helped you Dear @Maqbool if you watch those video's and keep the above point in mind and not skipping any part you will defiantly understand . wish you all the best
Great and professional Explanation.
Great explanation thank for sharing
This was a really great and informative video. Thank you.
Wellc0me
Sir very very informative
Very informative 😊
I am glad it helped you
Thanks for the video.. Do you pay VAT on the CIP value that is recognized as revenue?
@rosh_unb3944 for VAT check the video. How do journal entries for construction contracts 👉 ua-cam.com/video/R073fM5ykFo/v-deo.html vat is paid on tax invoice value even moblization advance received vat is charged that time and later on that amount is deducted and on net amount vat is charged for detail go through this video
great work sir, really informative. Year 2 first journal is credited to 300,000 instead of 30,000 or is it correct?
thanks - I just re watched - you mean in the last of video - its typo error please consider that as 30K not 300K debit side is correct on credit its written 300k instead of30k
Can you please tell me if i post entry for project expenses in cip account and material expenses on purchase or materials account, will there be a double entry?
Check the video how to do accounting for construction contract and Journal entries for construction contract
Dear end of each year do I need to close the billing A/C and ist day of next year i do the reversal of same entry?
Pls elobrate.
Deducting billing to date from cip means closing billing a/c in ist year?
@@maqbool-urrehman4760 CIP Less Billing is your Contract or Liability . we are Deducting the CIP "TO DATE " and Billing "TO DATE" this means that effect is already there. @12:33
(P.S Reversal : I Assume you are confused with my other video " How to Do Accounting for Construction contracts" in that Video in have did one reverse entry because income was being doubled that was quite different scenario ) If you want to understand the difference of recognizing income in the video ua-cam.com/video/UgQRczsFuG4/v-deo.html VS ua-cam.com/video/6jNQiwHqXOE/v-deo.html & (Above)
--- ua-cam.com/video/UgQRczsFuG4/v-deo.html ----> Work done / Certified =billed to customer (offcousre advance is something else ) ( in practical life mostly the contract are based on invoiced as work done but it can be otherwise )
----ua-cam.com/video/6jNQiwHqXOE/v-deo.html & (Above).-------> Work Done > or < billed to customer
I hope it helped you
Dear @Maqbool if you watch those video's and keep the above point in mind and not skipping any part you will defiantly understand . wish you all the best
I appreciate mate. Cip less billing will be done with or without double entry?
Or what will be the double entry end of ist year for "cip less billing" ?