HUF has acquired a plot of land. Memorandum of Understaing is made between HUF & its Karta whereby HUF has approached Karta (in his independent capacity)for construction of residential building on the said plot.
Terms & conditions of MOU are as follows ;
1.The expenses related to the Development of said Property shall be totally borne by the Karta. 2.Karta shall have right to sell the flats to the proposed buyers at a price to be decided in consultation with the HUF. 3.HUF in return shall shall part with 15% profit on sale proceeds of each flat as Development right to Karta 4.Karta has assigned all their rights, title or interest in the said plot. 5.Karta shall cease to have any matter of any rights, title or interest in the said plot.
Please suggest how to do accounting in case of both i.e.HUF & Karta.