sale of part of building

[PARVEEN ARORA]

Dear All,

Kindly guide me on issue on  sale of 1 Floor out of  4 Floors in a building by a construction company.

actually want to know about both issue : 

1) if land is purchased by construction company , it build 4 Floor building and sold out 1 floor .

2) if 4 floor finished building was purchased  by construction company and sold 1 floor from it.

How to calculate the closing stock for the company

Kindly oblige

[CAGOPALJI AGRAWAL]

You have to apportion the cost in both cases by approved valuation engineers.

AI Summary

Guidance Sought on Calculating Closing Stock for Building Sales: Use Approved Valuation Engineers for Cost Apportionment A construction company seeks guidance on calculating closing stock after selling one floor of a four-floor building. The inquiry addresses two scenarios: first, if the company builds the four floors after purchasing the land, and second, if it buys an already finished four-floor building. The response suggests that in both cases, the cost should be apportioned using approved valuation engineers.