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How is the treatment of previous year Work-In-Progress in the current year books to be done ? What will be the entry for the same ?

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Question added by SUNILKUMAR RAMAKRISHNAN THONIPPARAMBIL , Chief Accountant , Domopan Qatar WLL
Date Posted: 2015/04/09
Mohammed Shahid Ullah
by Mohammed Shahid Ullah , Executive Director (Finance) , Coal Power Generation Company Bangladesh Limited

Previous Work in Progress to be added with current year Work in Progress. It will treated the opening entry of current assets.

Murtaza Sidhpur wala
by Murtaza Sidhpur wala , Accountant and Inventory Manager , Khalid -Al-Dabbus Tailoring Material Co. W.L.L

It is a long term assets account  work in progress account will have a debit balance and it will reported in the balance sheet. of the previous year.

In the current year:-

The cost of the assets will accumulated to the WIP (work in progress) a/c until the asset is put to use or comes into service. when the asset is completed and put to use or in service the WIP A/C will be credited for the accumulated cost of the asset and will be debitted to the appro[riate property account.

lakshminarasimham mallareddi
by lakshminarasimham mallareddi , Manager Finance & Accounts , M/s. Vandana Global Limited, Raipur, Chhattisgarh

Debit the respective asset and credit the W.I.P to the extent of work completion & Capitalize it

abhijit shukla
by abhijit shukla , HEAD FINANCE & ACCOUNTS , EUROKIDS INTERNATIONAL PVT.,LTD

I guess its Capital Work in Progress. Once asset is put to use....the amount spent till this date is capitalised ie added to cost of asset. The accounting entry for the same would be

Dr. Respective Fixed Asset

Cr. CWIP

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

I completely agree with Mr. answers Murtaza

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