Two contracts that commenced on 1st January and 1st July 1994, respectively, were undertaken by a contractor and his accounts on 31st December 1994 showed the following position
|
Contract I |
Contract II |
|
|
Rs |
Rs |
|
|
Contract price |
4,00,000 |
2,70,000 |
|
Expenditure |
||
|
Materials |
72,000 |
58,000 |
|
Wages paid |
1,10,000 |
1,12,400 |
|
General charges |
4,000 |
2,800 |
|
Plant installed |
20,000 |
16,000 |
|
Materials on hand |
4,000 |
4,000 |
|
Wages accrued |
4,000 |
4,000 |
|
Work certified |
2,00,000 |
1,60,000 |
|
Work done but not certified (at cost) |
6,000 |
8,000 |
|
Cash received in respect there of |
1,50,000 |
1,20,000 |
The plants were installed on the date of commencement of each contract; depreciation thereon is to be taken at 10% p.a.
Prepare the contract’s account in the tabular form and ascertain the profit or loss to be taken to profit and loss account.