Model: Simple Finished Contracts
The following are the expenses of Renu & Co in respect of a contract which commenced on 1 April 2009.
|
Materials Purchased |
60,000 |
|
Materials on hand |
5,000 |
|
Direct wages |
80,000 |
|
Plant issued |
50,000 |
|
Direct expenses |
30,000 |
The contract price was Rs. 5,00,000 and the same was duly received when the contract was completed in December 2009. The charge indirect expenses at 10% on direct wages provide a 10% depreciation on the plant per annum.
You are required to prepare the contract A/c and the Contractee’s A/c.