Related QuestionsVIEW ALL [1]
Deepankar Engineers undertook a contract of building construction which commenced on 1/4/2017. The following details are available for the year ending
3113/2018.
You are required to prepare :
(a) Contract Account for the year ending 31/3/2018, and
(b) Balance-sheet extract as on that date.
| Particulars | (Rs.) | Particulars | (Rs.) |
| Contract price | 3,50,000 | Direct Wages Paid | 40,000 |
| Work certified | 1,7,500 | Material Returned From site | 2,500 |
| Cash received | 1,20,000 | Plant hire charges | 17,500 |
| Materials issued to site | 42,000 | Indirect Wages | 5,000 |
| Planning and Estimating Cost | 10,000 | Site Office Costs | 6,780 |
| Direct Expenses | 9,020 | Head Office Exps. apportioned | 3,750 |
| Work not Certified | 1,490 |
The contractor's own plant, original cost Rs. 20,000, has been continuously in use for this contract throughout the year. The residual value of the plant after 5 years of life is expected to be Rs. 5,000. Straight line method of depreciation is in use. As on 31/03/2018, outstanding wages amounted to Rs. 27,000 and material at site was estimated at Rs. 20,000.
