The following balances were extracted from the books of a building contractor on 31st March 1976.
|
Rs |
|
|
Materials issued to site |
62,720 |
|
Wages paid |
73,455 |
|
Wages outstanding as on 31 3 1976 |
720 |
|
Plant issued to site |
6,000 |
|
Direct charges paid |
2,515 |
|
Direct charges outstanding on 31 3 1976 |
210 |
|
Establishment charges |
5,650 |
|
Stock of materials at site on 31 3 1976 |
1,200 |
|
Value of work certified on 31 3 1976 |
1,65,000 |
|
Cost of work not yet certified |
3,500 |
|
Cash received on account of architect’s certificate |
1,41,075 |
The work was commenced on 1st April 1975 and the contract price agreed at Rs 2,45,000. Prepare contract account for the year, providing for depreciation of plant at 25%. Calculate the profit or loss on the contract to date and make such provision in the contract account, as you consider desirable. Set out also the contractor’s balance sheet so far as it relates to the contract.