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.
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.