Real Estate
Building Permit & Municipality Fees (CIP)
Capitalizing the government permit fees required to legally commence construction.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Construction in Progress (CIP) | Asset (+) | 12,000.00 | - |
| Cash / Bank | Asset (-) | - | 12,000.00 |
💡 Accountant's Note
Building permits and municipality approvals are a prerequisite for construction. These fees are directly attributable to the project and are therefore capitalized into the CIP account.
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