Construction Ltd. is engaged in two contracts, A and B during the year. Following information is available at the year end.
|
Particulars |
Contract A Rs. |
Contract B Rs. |
|
Date of commencement |
April 1st |
September 1st |
|
Contract price |
6,00,000 |
5,00,000 |
|
Materials delivered direct to site |
1,20,000 |
50,000 |
|
Materials issued from store |
40,000 |
10,000 |
|
Materials returned to store |
4,000 |
2,000 |
|
Material on site on December 31st |
22,000 |
8,000 |
|
Direct labor payments |
1,40,000 |
35,000 |
|
Direct expenses |
60,000 |
30,000 |
|
Architect’s fees |
2,000 |
1,000 |
|
Establishment charges |
25,000 |
7,000 |
|
Plant installed at cost |
80,000 |
70,000 |
|
Value of plant on 31st December |
65,000 |
64,000 |
|
Accrued wages 31st December |
10,000 |
7,000 |
|
Accrued expenses 31st December |
6,000 |
5,000 |
|
Cost of contract not certified by architect |
23,000 |
10,000 |
|
Value of contract certified by architect |
4,20,000 |
1,35,000 |
|
Cash received from contractor |
3,78,000 |
1,25,000 |
During the period, materials amounting to Rs.9, 000 have been transferred from contract A to contract B. You are required to show,
[a] Contract A/c, Contractee A/c and
[b] Extract from the Balance Sheet as on 31st December showing the calculation of WIP