Real Estate
Contractor Retention Withheld (CIP)
Withholding 10% of each progress payment as retention until project completion and defects period.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Construction in Progress (CIP) | Asset (+) | 500,000.00 | - |
| Cash / Bank | Asset (-) | - | 450,000.00 |
| Retention Payable (Contractor) | Liability (+) | - | 50,000.00 |
💡 Accountant's Note
Retention is withheld as a performance guarantee. Even though you have not paid the full amount, the full contract value is still part of the CIP asset.
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