Section 61 in The Andhra Pradesh Municipalities (Preparation of Accounts) Rules, 2017
61. Accounting of contractor bills.
(1)When a contractor's bill is accrued under Rule 33, the liability shall be taken by(a)Debit to the 'capital works in progress' account in case of an ongoing contract to create a new (capital) asset;(b)Debit to the 'revenue expenses' account in case the contract is to carry out certain repair or maintenance work(2)When the capital asset referred to in clause (a) above is completed, it shall be capitalized.(3)On receipt of contract completion certificate, the Accounts section shall capitalize the amount lying in the 'capital work-in-progress' account and convert it into a Fixed Asset.Chapter - XV Procedure for Accounting Fixed Assets
