Asset registration in progress with example
The first thing you should do is to separate purchase invoices (materials and consumables) and costs from each other, as well as specify the nature of the accounts and identify which accounting code to use.
Therefore, please note that in this accounting system, we need to create a general code called asset in the process of completion and a specific code of asset in the process of completing building number 1 (for example, number 1- or more information about the building). We give an example as a better understanding of this topic…
1- Purchase of 5 tons of rebar 12 for the amount of 15,000,000 Rials (Issue Mellat check No. 932651 M. 08/12/94)
2- Purchase of 20 branches of the 18th beam for the amount of 22,500,000 Rials (paid by Mr. Mirzaei’s salaryman)
3- Purchase of 15 corner pieces for 10,000,000 Rials (payment through Bank Saderat online)
4- The cost of welding iron 4,500,000 rials (payment from the fund)
5- The cost of construction workers’ salaries is 7,500,000 Rials (payment through Mr. Mohebi’s salary)
The registration of the above items is as follows:
Assets in the process of completion / Assets in the process of completing building number 1 / Materials and consumables 15,000,000 bad
Accounts and payable documents/ payable documents/ payment documents due in November 15,000,000 Bas
Issuance of Mellat check No. 932651, 12/08/94 for the purchase of materials and materials (5 tons of rebar 12)
……………………………………………………
Assets in the process of completion / Assets in the process of completing building #1 / Materials and consumables 22,500,000 bad
Cash/payables/payables of Mr. Mirzaei 22,500,000 Bes
Cash payment for the purchase of materials and materials (20 branches of the 18th beam)
……………………………………………………
Assets in the process of completion / Assets in the process of completing building #1 / Materials and consumables 10,000,000 bad
Cash / Banks / Saderat Bank Sh 32153514563 10,000,000 Bes
Deposit through receipt 3362615 from export for the purchase of materials and materials (purchase of 15 corners)
…………………………………………………
Assets in the process of completion / Assets in the process of completing building #1 / Operating expenses 4,500,000 BED
Cash / Fund 4,500,000 Bas
Cash payment from the fund for the cost of welding irons
……………………………………………………
Assets in the process of completion / Assets in the process of completing building #1 / Salary and salary expenses 7,500,000 bad
Cash / Cashiers / Cashiers of Mr. Mohebi 7,500,000 Bes
Cash payment for the cost of construction worker’s salary
…………………………………………………
fixed assets/tangible assets/building 59,500,000 bad
Assets in the process of completion / Assets in the process of completing building number 1 / Materials and consumables 15,000,000
Assets in the process of completion / Assets in the process of completing building number 1 / Materials and consumables 22,500,000
Assets in the process of completion / Assets in the process of completing building number 1 / Materials and consumables 10,000,000 Bas
Assets in the process of completion / Assets in the process of completing building #1 / Operating expenses 4,500,000 Bas
Assets in the process of completion / Assets in the process of completing building number 1 / Cost of salaries and wages is 7,500,000
Closing the completed building account to fixed assets
…………………………………………
You can see that in the last registration, we closed the asset account in the process of completion to the fixed asset account and finally its cost price was determined.
Note: In the example above, we tried to use a variety of accounting codes to have less duplicate registration.
This post is written by zahra9557