Model: Contractee Account Retention of % for a specified period
XL & Co. Ltd has undertaken the construction of a bridge over the River Cauvery for Trichy Municipal Corporation. The value of the contract is Rs. 50,00,000 subject to a retention of 20% until one year after the certified completion of the contract and the final approval of the Corporation engineer. The following are the details as shown in the books on 31 December 2009:
|
Labour on site |
16,20,000 |
|
Materials direct to site Less returns |
16,80,000 |
|
Materials from store |
3,24,800 |
|
Hire and use of plant—plant upkeep Account |
48,400 |
|
Direct expenses |
92,000 |
|
General overhead allocated to the contract |
1,48,400 |
|
Materials in hand on 30 June 2009 |
25,200 |
|
Wages accrued on 30 June 2009 |
31,200 |
|
Direct expenses accrued on 30 June 2009 |
6,400 |
|
Work not yet certified at cost |
66,000 |
|
Amount certified by the Corporation engineer |
44,00,000 |
|
Cash received on account |
35,20,000 |
You are required to prepare
- Contract account
- Contractee’s account and
- Show how the relevant items would appear in the Balance Sheet