(Valuation of work uncertified) Meenakshi Company Limited undertook a contract for construction of a bridge on 1 1 1997. The contract is expected to be completed by 30 6 1998. The contract price is Rs 8,00,000. You are required to prepare the contract account for the year ending 31 12 1997 from the following data:
|
Rs |
|
|
Materials issued |
2,00,000 |
|
Wages |
75,000 |
|
Materials returned to stores |
10,000 |
|
Plant used for full year |
2,00,000 |
|
General overheads |
80,000 |
|
Depreciation of plant 10% supervisors’ salary |
10,000 |
|
Work certified |
5,00,000 |
Cash received is 80% of work certified. Ten per cent of materials issued and 15% of wages may be taken to have been incurred for the portion of work completed but not yet certified. General overheads are charged as percentage of direct wages.