The following information was related to a construction company:
The construction started on 1 January 2009: Expenditure incurred during the year 2009:
|
Rs |
|
|
Materials issued |
5,50,000 |
|
Wages |
2,00,000 |
|
Direct expenses |
1,00,000 |
|
Plant purchased on 1 January 2009 |
5,00,000 |
|
Materials in hand |
25,000 |
Depreciate the plant @ 10%p.a. Other works expenses to be charged @ 20%of wages and office expenses @ 10%of work cost.
The amount certified by the engineer up to 31 December 2009 was Rs. 15,00,000, retention money being 20%of certified value. Prepare a contract account showing there in the amount of profit or loss to be transferred to P&L A/c.