Construction
Defects Liability Period Repair Cost
Recording the actual cost of remedying a structural crack identified during the defects liability period.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Provision for Defects (Liability) | Liability (-) | 20,000.00 | - |
| Cash / Accounts Payable (Remedial Sub) | Asset/Liability (-) | - | 20,000.00 |
💡 Accountant's Note
Defect repairs during the warranty period are charged against the provision previously set up. If the provision is exhausted, additional costs become an immediate expense.
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