chart of accounts

[leo3535]

hi all members



I saw in a particular organization accountant pass the following entry at the time when organization buy new assets.



fixed asset control a/c to capital work in progress a/c

in my view work in progress is asset if it is really asset how they can credit that or capital work in progress is different from work in progress. i will be very thank full if someone explain.

[Lisa_p]

How about this - a fixed asset is being built and transactions go into the Capital work in progress account while it's in progress. Then when the asset is put into service, your entry is made.

[leo3535]

are they rightly creding capital work in progress a/c give me logic

of what is ment by capital work in progress a/c.

say organization acquire machinery they are passing following entry.

fixed asset control a/c

to capital work in progress a/c

do you think they can use some other a/c in place of capital work in progress or capital work in progess is the best choice.