Hello everyone,

We had our year end and its time for me to post some journals... the one im having difficulty understanding is the WIP.

We build residential homes.

At year end 31 March we had still a few jobs unfinished. I wanted to invoice them before month end but they paid only in April. I know also that
the right way to do this is to post WIP journals... or am i not correct here.

I thought of:
Dr Work in progress 2 000 000 (Balance sheet asset account)
CR ??? (not sure where to post this to) ?
CR Vat control account ? (not sure if this is correct) ?

We are in the 7th year of trading and i was told the CR account should also be a balance sheet item...

Any help will be appreciated !!!