SV construction Ltd. have obtained a contract for construction of a bridge. The value of the contract

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SV construction Ltd. have obtained a contract for construction of a bridge. The value of the contract is Rs. 12 lakhs and the work commenced on 1st October, 2001. The following details are shown in their books for the year ending 30th September 2002.

Life of plant purchased is 5 years and scrap value is nil. 

1. Prepare the contract account for the year ending 30th September, 2002 

2. Show the amount of profit which you consider might be fairly taken on the contract and how you have calculated it.

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Related Book For  answer-question

Cost Accounting

ISBN: 9780070221628

4th Edition

Authors: Jawahar Lal, Seema Srivastava

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