A Contract Account is debited with the cost of materials, labour, overhead plant at the end...

  

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A Contract Account is debited with the cost of materials, labour, overhead plant at the end of the year and is credited with material at site 10,000, Plant at site 40,000 after charging depreciation @20%. Net cost of the contract is 1,50,000 which is debited in contract account in the proportion of 3:2:1 for material, labour and overheads respectively. Contract price is 2,50,000 and architect has certified 4/5 of the work as completed 15 days before end of the year. 80% of the certification has been received in cash. The accountant informs you that 2/3 of the profit on the basis of cost has been credited and transferred to Profit and Loss A/c which is 40,000. From the given infromation prepare contract Account showing the cost of work done but not yet certified. A Contract Account is debited with the cost of materials, labour, overhead plant at the end of the year and is credited with material at site 10,000, Plant at site 40,000 after charging depreciation @20%. Net cost of the contract is 1,50,000 which is debited in contract account in the proportion of 3:2:1 for material, labour and overheads respectively. Contract price is 2,50,000 and architect has certified 4/5 of the work as completed 15 days before end of the year. 80% of the certification has been received in cash. The accountant informs you that 2/3 of the profit on the basis of cost has been credited and transferred to Profit and Loss A/c which is 40,000. From the given infromation prepare contract Account showing the cost of work done but not yet certified.

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