The following information relates to a building contract for Rs 10,00,000.
|
1986 Rs |
1987 Rs |
|
|
Materials issued |
3,00,000 |
84,000 |
|
Direct wages |
2,30,000 |
1,05,000 |
|
Direct expenses |
22,000 |
10,000 |
|
Indirect expenses |
6,000 |
1,400 |
|
Work certified |
7,50,000 |
10,00,000 |
|
Work uncertified |
8,000 |
– |
|
Materials at site |
5,000 |
7,000 |
|
Plant issued |
14,000 |
2,000 |
|
Cash received from contractee |
6,00,000 |
10,00,000 |
The value of the plant at the end of 1986 and 1987 was Rs 7,000 and Rs 5,000, respectively.
Prepare (i) contract account and (ii) contractee’s account for the two years 1986 and 1987 taking into consideration such profit for transfer to profit and loss account as you think proper.