Modern Contractors have undertaken the following two contracts on 1st January, 2017.
|Particulars||Contract A(Rs.)||Contract B(Rs.)|
|Materials sent to sites||85,349||73,267|
|Labour engaged on sites||74,375||68,523|
|Plant installed at sites at cost||15,000||12,500|
|Materials returned to stores||549||632|
|Materials in hand on 31st Dec. 2017||1,883||1,736|
|Cost of work not certified||4,500||3,000|
|Wages accrued on 31 51 Dec. 2017||2,400||2,100|
|Direct expenditure accrued on 31 Dec. 2017||240||180|
|Value of plant on 31st Dec. 2017||11,000||9,500|
The contract prices have been agreed at Rs. 2,50,000 for Contract A and Rs. 2 00 000 for Contract B. Cash has been received.from contractors as follows:
Contract A Rs. l,80,000 and Contract B Rs. 1,40,000.
Prepare Contract Accounts, Contractee's Account and show how the Work-in-Progress will appear in the Balance Sheet of the contractor.
X Ltd. is engaged in two contracts, A and B during the year .
The following information is available at 31st Dec. 2017.
|Date of Commencement||Contract - A (Rs.)||Contract - B (Rs.)|
|Materials delivered to site||1,20,000||50,000|
|Material issued from store||40,000||10,000|
|Material returned to store||4,000||2,000|
|Material on site 31st Dec. 2017||22,000||8,000|
|Direct labour payments||1,40,000||35,000|
|Plant installed at cost||80,000||70,000|
|Value of Plant on 31st Dec. 2017||65,000||64,000|
|Accrued wages 31st Dec. 2017||10,000||7,000|
|Accrued expenses 31st Dec: 2017||6,000||5,000|
|Cost of contract not certified by architect||23,000||10,000|
|Value of contract certified by architect||4,20,000||1,35,000|
During the period, materials amounting to Rs. 9,000 have been transferred from Contract A to Contract B. You are required to show :
(a) Contract Alc,
(b) Contractee 's Alc, and
(c) Extract from Balance Sheet as on 31st Dec. 2017 showing the calculation of WIP.