M/s Arun and Varun undertook a contract for Rs 2,50,000 for constructing a college building. The following is the information concerning the contract during the year 1997:
|
Rs |
|
|
Materials sent to site |
85,349 |
|
Labour engaged on site |
74,375 |
|
Plant installed at site at cost |
15,000 |
|
Direct expenditure |
3,167 |
|
Establishment charges |
4,126 |
|
Materials returned to stores |
549 |
|
Work certified |
1,95,000 |
|
Value of plant as on 31st December 1997 |
11,000 |
|
Cost of work not yet certified |
4,500 |
|
Materials at site 31st December 1997 |
1,883 |
|
Wages accrued 31st December 1997 |
2,400 |
|
Direct expenditure accrued 31st December 1997 |
240 |
|
Cash received from contractee |
1,80,000 |
Prepare contract account, contractee’s account and show how the work in progress will appear in the Balance Sheet as on 31st December 1997.