Construction Limited is engaged on two contracts A and B during the year. The following particulars are obtained at the year end (December 31):
|
Contract A |
Contract B |
|
|
April I |
September I |
|
|
Date of commencement |
Rs |
Rs |
|
Contract price |
6,00,000 |
5,00,000 |
|
Materials issued |
1,60,000 |
60,000 |
|
Materials returned |
4,000 |
2,000 |
|
Materials at site (December 31) |
22,000 |
8,000 |
|
Direct labour |
1,60,000 |
45,000 |
|
Direct expenses |
70,000 |
40,000 |
|
Establishment expenses |
25,000 |
7,000 |
|
Plant installed at site |
80,000 |
70,000 |
|
Value of plant (December 31) |
65,000 |
64,000 |
|
Cost of contract not yet certified |
23,000 |
10,000 |
|
Value of contract certified |
4,20,000 |
1,35,000 |
|
Cash received from contractures |
3,78,000 |
1,25,000 |
|
Architect’s fees |
2,000 |
1,000 |
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 accounts, (b) contractures’ accounts, and (c) extract from balance sheet as on December 31, clearly showing the calculation of work in progress.