The following particulars are extracted from the books of Nirmala Constructions, Chennai on 31/3/2018 :
|Plant and Machinery ( 1/4/2017)||60,000|
|Material returned to stores||3,200|
|Material at site||7,400|
|Plant and Machinery at site (31/3/2018)||44,000|
Prepare Contract Account for the year ended 31/3/2018 and Extract of Balance Sheet as on that date.
Amar Builders undertook a contract for Rs. 10,00,000. The following expenses were incurred for this contract during the year 2016 -17:
|Material sent to site||3,10,000|
|Direct wages paid||2,80,000|
The architect of contractee certified work of 6,00,000 at the end of year. The cost of work uncertified was Rs. 50,000 on that date. The material and plant were at site of 30,000 and Rs. 60,000 respectively at the end of the year.
You are required to prepare Contract Account and show how these transactions will appear in the Balance Sheet of the contractor at the end ofthe year.