Deepankar Engineers undertook a contract of building construction which commenced on 1/4/2017. The following details are available for the year ending
You are required to prepare :
(a) Contract Account for the year ending 31/3/2018, and
(b) Balance-sheet extract as on that date.
|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.