A contractor prepares his accounts for the year ending 31st December each year. He commenced a...

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A contractor prepares his accounts for the year ending 31st December each year. He commenced a contract on 1st April, 2010. The following information relates to the contract as on 31 December, 2010: Rs. Material issued Labour charges Salary to Foreman 2, 51,000 5, 65,600 81,300 A machine costing Rs. 2, 60,000 has been on the site for 146 days, its working life is estimated at 7 years and its final scrap value at Rs. 15,000. A supervisor, who is paid Rs. 8,000 p.m., has devoted one-half of his time to this contract. All other expenses and administration charges amount to Rs. 1, 36,500. Material in hand at site costs Rs. 35,400 on 31st December, 2010. The contract price is Rs. 20, 00,000. On 31st December, 2010 two-third of the contract was completed. The architect issued certificates covering 50% of the contract price, and the contractor had been paid Rs. 7, 50,000 on account. Prepare Contract A/c and show how much profit or loss should be included in financial accounts to 31st December, 2010. A contractor prepares his accounts for the year ending 31st December each year. He commenced a contract on 1st April, 2010. The following information relates to the contract as on 31 December, 2010: Rs. Material issued Labour charges Salary to Foreman 2, 51,000 5, 65,600 81,300 A machine costing Rs. 2, 60,000 has been on the site for 146 days, its working life is estimated at 7 years and its final scrap value at Rs. 15,000. A supervisor, who is paid Rs. 8,000 p.m., has devoted one-half of his time to this contract. All other expenses and administration charges amount to Rs. 1, 36,500. Material in hand at site costs Rs. 35,400 on 31st December, 2010. The contract price is Rs. 20, 00,000. On 31st December, 2010 two-third of the contract was completed. The architect issued certificates covering 50% of the contract price, and the contractor had been paid Rs. 7, 50,000 on account. Prepare Contract A/c and show how much profit or loss should be included in financial accounts to 31st December, 2010.