Question and answer in accounting of contracting

Question And Answer In Accounting Of Contracting

More than a practical case will be discussed in the accounting of construction companies

What are the most appropriate ways to distribute general and administrative expenses on projects?

Expenses are classified as direct and indirect expenses. There are companies that close indirect costs and load them on cost centers, but what is the fair basis for the distribution of indirect expenses on projects and their effect on the income statement.

How to handle accounting for dealing with fixed assets and equipment?

The cost of accounting guidance varies according to the answer to the following questions: Is the company owned by the company or belongs to others Is the material transferred from the company's stores or not Is the carrier equipment company or external carrier.

How is the closing of expenses closed at the end of each year?

What are the reasons for closing the expenses? There are those who see closing the public expenses on the projects or closing the establishment expenses as a fixed asset, closing the expenses of the ongoing projects and did not achieve revenue on projects under implementation and real estate investment expenses.

What is the difference between capital and income expenditure and accounting guidance?

How the interest is calculated and monitored as the interest on the loan will be clear, which is the value of ( the loan × ratio ×duration) while the overdraft is calculated according to the duration and amount of withdrawal and the calculation of interest according to the duration of use of the loan.

What is the difference between the disbursement and the outstanding expense with a practical example of rents?

To prove the maturity of the lease, the following is the calculation of the period of rent and determining the cost center and determine whether the rent relates to the employees and employees of the company or is there external labor belonging to the subcontractor for example.