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Gajanan Construction, Mumbai took a Contract No. 51 for the construction of a school building on 1st January, 2017. The contract price is fixed at Rs. 15,00,000; subject to a retention of 20% of work certified. The following are the details of expenditure made by contractor on this contract during the year :
| Particulars | (Rs.) |
| Direct labour charges | 4,05,000 |
| Material issued from stores | 4,20,000 |
| Materials directly purchased | 81,200 |
| Plant installed at site on 30th June, 2017 | 60,000 |
| Direct expenses (inclusive of Direct Expenses due but not paid Rs. 3,000) | 23,000 |
| Management overheads | 37,200 |
| Materials transferred to Contract No. 55 | 6,300 |
| Outstanding Wages | 7,800 |
| Material transferred from Contract No. 55 | 1,600 |
| Work certified | 11,00,000 |
| Work uncertified | 16,500 |
Depreciation on plant is provided @ 40% p.a. on the original cost.
Prepare:
(A) Contract Alc
(B) Contractee A/c
(C) Extracts of Balance Sheet as on 31st December, 2017.
The following information is relating to a building contract of Rs. 50,00,000. The contractee has a reed to a 90% of the work certified in cash.
| Particulars | 2017(Rs.) | 2018(Rs.) | 2019(Rs.) |
| Materials | 7,00,000 | 8,00,000 | 4,00,000 |
| Wages | 3,20,000 | 4,80,000 | 5,00,000 |
| Direct expenses | 20,000 | 30,000 | 10,000 |
| Indirect expenses | 10,000 | 7,000 | 3,000 |
| Work certified | 10,00,000 | 30,00,000 | 50,00,000 |
| Work uncertified | - | 40,000 | - |
| Plant issued | 2,00,000 | - | - |
| Value of lant on 31st Dec. | 1,80,000 | 1,60,000 | 1,30,000 |
Prepare Contract A/c for the year 201 7, 2018, and 2019.
