Vaishali undertook a contract for the construction of house on 1.1.2017. The contract price was Rs. 22,50,000 The following details are available for 2017 :
|Materials purchased and issued||3,60,000|
|Materials issued from stores||45,000|
|Plant installed at site||1,80,000|
|Materials returned to stores||22,500|
|Materials on hand at the end of the year||9,000|
|Plant in hand at the end of the year||1,35,000|
|Direct expenses outstanding||36,000|
|Cash received (80% of work certified)||9,00,000|
Prepare the Contract Alc and show the relevant items in Balance Sheet.
ABC Co. Ltd., Furnishes you with the following information for the year ended 31.03.2017 and 31.03.2018
|Work Certified during the year||20,000||80,000|
|Closing Stock of Material at Site||3,000||-|
The total Contract price is Rs. 1,00,000. The entire amount was received by 31.03.2018. As per the accounting policy adopted by the company, no profit is to be considered unless the value of work certified at the year end exceeds 25% of the Contract Price.
Prepare Contract Account for the year ended 31st March, 2~ 17 and 31st March, 2018.