Real Estate
Cost of Sales Recognition at Handover
Recognizing the construction cost of a completed unit as Cost of Sales when it is handed over.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cost of Property Sold | Expense (+) | 450,000.00 | - |
| Property Inventory / CIP | Asset (-) | - | 450,000.00 |
💡 Accountant's Note
Revenue and cost of sales must be matched. The accumulated construction cost of the unit is transferred to Cost of Property Sold at the same time the sale revenue is recognized.
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