The following information relates to a construction company in respect of a contract for Rs. 20,00,000:
|
2008 Rs. |
2009 Rs. |
|
|
Materials issued |
6,00,000 |
1,68,000 |
|
Direct wages |
4,60,000 |
2,10,000 |
|
Direct expenses |
44,000 |
20,000 |
|
Indirect expenses |
12,000 |
2,800 |
|
Work certified |
15,00,000 |
20,00,000 |
|
Work uncertified |
16,000 |
– |
|
Materials at site |
10,000 |
14,000 |
|
Plant issued |
28,000 |
4,000 |
|
Cash received from contractee |
12,00,000 |
20,00,000 |
The value of the plant at the end of 2008 and 2009 was Rs. 14,000 and Rs. 10,000, respectively.
Prepare (i) Contract account and (ii) Contractee’s account for the years 2008 and 2009 taking into consideration such Profit for transfer to P&L A/c as you think appropriate.