Senthil Construction Company undertook a contract for constructing a building from 1st January 1998. The contract price was Rs 1,00,000. He incurred the following expenses.
|
Rs |
|
|
Materials issued |
6,000 |
|
Materials in hand, at the end |
1,000 |
|
Wages |
5,000 |
|
Direct expenses |
20,000 |
|
Plant purchased |
10,000 |
The contract was completed on 30th June 1998 and the contract price was duly received. Provide depreciation at 20% p.a. on plant and charge indirect expenses at 20% on wages. Prepare contract account in the books of the company.