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Accounting Guidance For Real Estate Investment Step By Step


 

Accounting guidance for real estate investment step by step


- In 10 steps you can manage real estate investment accounts in your company from opening accounts to collecting

premiums, selling unit, selling final and showing final accounts



1-The first step is to impose a project on behalf of the October Housing Complex. There are two basic accounts for any real estate investment 

project that should be established in the guide. First Account: October Real Estate Investment under the Real Estate Investment Account and 

the Second Account under the Cost of Sales Account.




2- The second step is to register the units of the project from apartments, shops, garage or basement, explaining the selling value of each 

unit and the cost


Units of October Residential Complex



3- Step 3 Establishing customer contracts and determining payments and installments and dates of entitlement and other conditions of the 

contract For example, was contracted with Dr. Esawi on the apartment # 1 first round amount and the capacity of 440 thousand pounds were 

determined payments and installments as shown in Figure



4-Step 4 Once the contract has been established with the customer, there must be two accounts in the directory. Account on behalf of the 

customer under the customer account and another account in the name of the customer under the customer account. Payments submitted

 to date. There are no financial transactions. All administrative activities.

5-The fifth step is to collect the payment of the booking from the customer in cash of 140 thousand pounds and the accounting record as 

shown


6-Step 6 Proof of expenses during the financial period For example, proof of expenses through the settlement of a good custody or through 

the purchase of materials or bonds of cash or checks




7-Step 7 Closing the expenses The end of the financial period in the real estate investment account shall be repeated and closed every 

financial year until the project ends



8-Step 8 Prove the actual sale and revenue generation and the composite entry will be explained in detail



A very important step is to close the cost of sales of the unit in the investment property account



You can make 3 previous steps in one constraint as follows





-Proof of sale at full sales value 440,000 LE Client indebtedness and income of real estate investment complex October creditor

-Proof of closing the account of the payments made to the customer in the customer's account in the amount of the payments paid by the 

reservation payment of 140 thousand pounds

-Reduction of the account of real estate investments with a cost of housing unit of 340 thousand pounds cost of sales city and real estate 

investment creditor

-The cost of sales is shown in the income statement and the remaining balance of the investment property account is shown in the balance 

sheet and with the last sold unit, the investment property account should be written off

9-Step 9 Collection of remaining payments and installments Once the sale has been established from the moment the final sale is 

established, the customer is dealt with directly and any premium collected is the customer and not the prepayment account.



10-Step 10 Client Account Statement We note that the customer owes the value of the unit and a creditor with the value of the prepayments 

and a creditor in the amount of the premiums collected after the sale has been proven




Video real estate investment and accounting treatment



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