222

$show=home

Welcome to Accounting Education

The Accounting University with 3400+ Accounting contents as study material which can watch, read and learn anyone, anywhere.

Start your studies

$show=home

Latest $type=blogging$count=5$author=hide$comment=hide$label=hide$date=hide$show=home

How to Prepare Construction Accounts from Incomplete Records


Problem

This is Accountant from uae. I am going to join a new within few days... this company is a construction company. The problem is for me that they don't have any record properly there. They have just maintained some of the expenses for the year feb 2008 in excel. Now I want to start in focus or tally all details.. one is that I dont know there receipts during the period. they only few records about that. they dont have any record about tools as well and there depreciation. I don't know how start the work. i am bit confused about that how to start and from where should I start. what are the things I need to keep in mind. I hope that you will help me in this regard. So suggest me how to start the work. Solution Not only you many accountants face this problem when they join any new concern they find incomplete record. Preparing accounts without some or all prime accounting information is very difficult. When there is no old record of assets, liabilities, debtors, creditors or any bills of incomes or expenses, writing up his client’s books is not easy. In this situation following steps will be helpful to you to prepare accounts from incomplete records .

Simple Steps in the Preparation of Construction Accounts from Incomplete Records
Ist Step Making an Opening Balance Sheet When it is not available You must start your working by making an opening balance sheet manually before recording it in tally. If opening balance sheet is not available for your construction company, then try to trace the balance of different assets and liabilities from your Company’s owner, directors, CEO and manager after meeting with them and you can check all assets and liabilities by physically by making a rough list .

  • If your construction company has building or plant then how many and what is its cost.
  • If your construction company has taken loan, then from where and what is its opening balance.
  • If this create your construction company in Tally.ERP 9 or Tally 9 which you are using and 2nd Step Prepare summary of Cash Book You have said me that your client has given you the information of his expenses in excel sheet. Ask more information about bank transactions or try to get bank receipts with this you can trace old receipt transactions of your construction company which will be record in tally receipt voucher. You know that in the receipt side, we write cash sale and other incomes of business which we receive either in cash or through bank. Even company can introduce new and fresh capital which you have to write in the receipt side. Try to recognize your cash book with bank pass book and it will give you many information regarding which item is not recorded in Company’s book. 3rd Step Make the list of Debtors and Creditors It is very necessary to know about amount due to creditor and amount due from debtors. You have to make new list of debtors and creditors by getting knowledge from your construction company’s owner. By analysis current and previous year Debtors and creditors list , you can know many new things Credit sale = If you have opening balance of debtor and you have known who are the debtor at this time and from bank statement what amount of cash received from debtor . Then you can find credit sale of this year Credit Sale = Closing debtors + amount received – opening debtors X = 10000 +5000 – 8000 X = 7000 Discount Allowed = Opening debtors + credit sale – amount received – closing debtors Bad Debt = Opening debtors + credit sale – amount received – discount allowed – closing debtors Credit purchase = Closing balance of creditors + amount paid – opening balance of creditors Discount received = Opening creditors + credit purchase – amount paid – closing balance of creditors You also analysis advance payments to creditors and also advance amount received from debtors. 4th Step Calculation the value of Stock and Work in progress You should check all stock and work in progress. These is our current asset and after physically check the material make the list in tally by going Gateway of tally >> Inventory info >> stock items >> one by one write all items of your construction company. You can also write there measurement way Gateway of tally >> inventory info >> units of measurement >> create

Check out also the problem relating to the solution of valuation of stock

You should help the specialize person who can calculate the value of present stock. 5th Step Calculation of special items a) Calculation of depreciation and its record in books b) Calculation of personal benefits from business If you succeed to make final accounts after analysis above. After this never to forget to record your current transactions. Many current transactions will be linked with your old transaction and you will know many new things which you have omitted. After some time, your company’s financial and revenue position will show correct position. If you have doubt any specific item, then you can contact me again.

related Source : Accounting Procedure of Construction Company and Preparation of accounts from incomplete records (PDF File of Certified Public Accountants of Hong kong )

COMMENTS

: 5
  1. thank you very much, it helps the freshers who enter into a construction company.

    ReplyDelete
  2. Hello sir i have joined recently in Construction company which is new company
    Iam fresher could you please help me . Now i have lot expenses only which is purchase for office use
    Please help me how to start the accounting process

    ReplyDelete
  3. the above description will help you a lot . the first step is that you have to build up balance sheet of the book beginning . get available data, you can enter all the assets followed by liability (in this case you are allowed to put the approximate values)
    once you have finished the the asset side then you can enter the liability then the difference in asset and liability will arise that you can adjust in capital.
    your balance sheet ready

    ReplyDelete
  4. Hi Sir i have joined as a accountant in one of the most popular construction company in india .. but they have not maintained proper records like they dont have opening balances since 2012 .. this company started only from 2012 .. i just want to know hoe to start up the entries in tally .... what all information i need to ask with our manager..

    ReplyDelete
  5. Any tally video to know beginners how to enter data for construction company

    ReplyDelete
In comment, you can give your feedback, reviews, ideas for improving content or ask question relating to written content.

Name

access,2,account,86,accountant,94,Accounting,680,accounting definitions,99,accounting ebook,3,Accounting education,85,Accounting Education Ads Help,1,accounting procedure,2,accounting process outsourcing,2,Accounting Software,52,advance,3,advertising,6,africa,7,Amalgamation,6,amendments,16,announcements,62,Annuity,2,assets,53,audit,46,auditing,41,Australia,2,B.Com.,22,balance sheet,86,bank,111,Bank reconciliation,12,banking,33,basic accounting,110,BBA,1,benefits,13,best,50,bill,12,black money,3,blog,12,bloggers,7,book keeping,4,bookkeeping,3,Branch Accounting - full tutorial,8,budget,35,Budget variance,13,business,65,businessman,9,CA,30,calculator,4,canada,3,capital,72,capital budgeting,27,career,21,cash,40,cash book,8,cash flow statement,11,Chiense,1,children,13,china,6,class,3,coaching,2,coins,2,college,6,commerce,10,commerce students,7,company,36,computer,9,computer accounting,1,conference,4,Contact vinod kumar,1,Control Your Spending,27,corporate accounting,69,cost,160,cost accounting,195,cost center,8,cost centre,1,CPA,2,credit,18,credit card,11,cs,10,currency,35,data,11,Debit and credit,17,debit cards,1,debt,62,debtor,21,degree,6,depletion,2,depreciation,38,Diwali Messages,12,documents,4,dollar,5,domain,3,Downloads,3,Dubai,1,e-accounting,17,earning,17,education,247,Education Loans,6,email,15,employee,4,EPF,2,ERP,7,euromoney,1,examination,7,excel,17,excise duty,6,expenses,65,facebook,7,factor of loan,1,fans,2,feature,32,fifo,5,FII,4,fiji,1,finacle,1,finance,823,Finance Journal Entries,4,Financial,134,financial accounting,145,Financial Statements,3,fire insurance,3,flickr,2,flow,4,forensic,4,forex,21,formula,8,france,1,fraud,6,free,2,fun,34,function,1,fund,48,GAAP,36,GDP,1,gdr,5,germany,1,gold,7,goodwill,4,goodwill accounting,3,google,34,google apps,3,google apps,1,google base,1,google buzz,1,google calendar,1,Google docs,38,google finance,3,google fusion tables,1,google talk,5,govt.,5,GST,33,guide,85,health,6,Hindi,2,Hindi Language,3,history,3,holding company,3,How to treat FBT in Tally 9,1,HRA,3,ICAI,11,ICAWI,3,ICICI Bank,1,IFRS,11,income,17,income statement,19,Income Tax,7,India,57,indian railway,1,Indonesia,1,inflation,4,inflation accounting,3,infographics,8,information,7,inspiration,176,insurance,14,insurance accounting,2,Intangible,3,interest,26,international,7,Internet,41,Introduction of Tally 9,1,inventory,41,investment,135,investment in Shares,6,invoice,3,IT,1,Japan,1,Job costing,4,journal entries,140,Journal Entries eBook Help,4,Kalculate,1,keyboard,3,kuwait,2,laptop,2,law,4,LBT,1,learning,36,lease,5,lecture,11,ledger,17,leducation,1,Leverage Analysis,7,liabilities,16,lifo,3,linkedin,1,loan,74,logical point,1,loss,5,loss of profit,1,M.Com.,5,m.phil,2,malaysia,3,management accounting,129,manual accounting,4,manufacturing account,1,market,11,marketing,3,mastercard,2,material,13,MBA,14,MCA,1,media,4,migration,2,mobile,9,money,61,ms word,3,ms. excel,14,multi currency in tally 9,1,Multicurrency Accounting,3,mutual fund,30,national security,1,new and sacrifice ratio,1,new york times,1,new zealand,1,news,1,NGO,5,nonprofit-accounting,6,North Georgia Mountains,1,Notification,1,NPV,17,NSE,1,odbc,2,office,10,oman,1,online application,2,online accounting,11,Online Accounting Course,5,otcei,1,pakistan,3,parents,3,Partnership,1,pay pal,3,pdf,4,Personal Finance,6,pie chart,1,pie chart of income,2,pnb,5,podcast,1,ppf,1,presentation,10,price,7,privacy policy,2,prof. vinod kumar,13,profit,24,profit and loss account,12,project management,11,provision,13,purchase,9,puzzles,2,quickbooks,2,Quote,22,quotes,42,quotes of svtuition,1,rating agency,2,ratio analysis,34,RBI,7,readers,13,real estate,13,rectification of errors,11,remote control,2,reports,10,reserves,8,responsibility accounting,4,retirement,2,revenue,3,Revenue reserves,2,review,7,risk,11,rupees,9,salary,5,sale,12,SAP,3,saudi arabia,1,saving,19,sbi,9,scholarship,2,school,1,SEBI,13,security,30,service tax,23,share,20,share trading,15,Shares,16,shri lanka,3,singapore,2,sms,6,social accounting,7,society,5,solution,218,South Africa,1,stock,24,stock exchange,22,structure,6,student,39,students,70,study,21,subsidiary company,2,svtuition,14,swiss bank,2,tally,100,tally 9,8,Tally 7.2,8,Tally 9,42,Tally.ERP 9,59,TallyPrime,1,tanzania,2,tax,94,Tax Accounting,30,TDS,15,teacher,62,teaching,112,technology,33,test,40,testimonial,15,testimonials,15,thailand,1,tips,60,trading,5,trading on equity,2,transaction,7,trend,12,trial balance,14,truthfulness,1,tuition,3,twitter,10,UAE,5,UGC - NET Commerce,13,UK,11,United Arab Emirates,1,university,9,usa,25,valuation,9,VAT,22,Video,36,Voucher and vouching,4,Wealth,8,wikipedia,25,working capital,29,youtube,14,
ltr
item
Accounting Education: How to Prepare Construction Accounts from Incomplete Records
How to Prepare Construction Accounts from Incomplete Records
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhyMKU6zfUwBiYqzySd3nTUEtH2Pl7ZymJzuV7TZlNI510EnLzEvjZZMdPcnfg0mdjtiuvwGNpET7okdse5g5IxOQ_Tx_S32EplYOK9NKXc2zBjWHSTfTy_0LH0unCb0Da_QhOD7hGIVXOb0t62-IpLf_ABwWVLT5kxLHGdTnTtf6QnjGcLJrcSBC5N/w576-h214/record.png
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhyMKU6zfUwBiYqzySd3nTUEtH2Pl7ZymJzuV7TZlNI510EnLzEvjZZMdPcnfg0mdjtiuvwGNpET7okdse5g5IxOQ_Tx_S32EplYOK9NKXc2zBjWHSTfTy_0LH0unCb0Da_QhOD7hGIVXOb0t62-IpLf_ABwWVLT5kxLHGdTnTtf6QnjGcLJrcSBC5N/s72-w576-c-h214/record.png
Accounting Education
https://www.svtuition.org/2009/10/how-to-prepare-construction-accounts.html
https://www.svtuition.org/
https://www.svtuition.org/
https://www.svtuition.org/2009/10/how-to-prepare-construction-accounts.html
true
2410664366776677676
UTF-8
Loaded All Posts Not found any posts VIEW ALL Reply Cancel reply Delete By Home PAGES Contents View All RELATED CONTENTS FOR YOUR LEARNING Topic ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy