‘A’ undertook several large contracts and his ledger contained therefore a separate account for each contract. On 31-12-1991, the account of contract number 22 showed the following amounts as expended thereon.

 

The contract was for Rs 15,00,000 and up to 31-12-1991 Rs 6,00,000 had been received in cash which represented 80% of work certified. The materials at site unconsumed were valued at Rs 15,000. The contract plant was to be depreciated by Rs 16,000. Prepare the contract account showing that profits thereon have been earned to date.

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Rs Materials directly purchased Materials issued from stores 1,80,000 50,000 Wages 2,44,000 Direct expenses 24,000 Plant purchased 1,60,000 Proportionate establishment charge 54,000 Rs Materials directly purchased Materials issued from stores 1,80,000 50,000 Wages 2,44,000 Direct expenses 24,000 Plant purchased 1,60,000 Proportionate establishment charge 54,000

Answer rating: 100% (QA)

Solution Contract Account Particulars Amount Particulars Amount Material Account 180000 Add Material ... View the full answer