Real Estate Accounting

Feb 20, 2018
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I have a scenario where we are going to build a real estate project through Contractor Finance.

Contractor Finance- Contractor will be financing for the 90% of the project, our equity is 10% which have to be paid as an advance payment to the contractor

Construction period - 2 years

There is a loan repayment schedule (tenure 8 yrs) and we have to pay the Interest part of the loan during the grace period (2 yrs) and after the grace period Principal/Capital + Interest will be paid

During the construction period, we will be starting to sell the units and shall account for the advance payment from the buyers and after the construction period a fixed amount will be charged from each customer monthly

Please help me how to account for these scenarios


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