Model: Two Contracts & Material transfer from one to another
RR Construction Ltd is engaged on two contracts, Contract No, 105 and 106 during the year 2009. The following particulars are obtained at the end of the year 31 December 2009.
|
Contract 105 Rs. |
Contract 106 Rs. |
|
|
Contract price |
3,00,000 |
2,50,000 |
|
Materials issued |
80,000 |
30,000 |
|
Materials returned |
2,000 |
1,000 |
|
Materials on site |
11,000 |
4,000 |
|
Direct labour |
75,000 |
21,000 |
|
Direct expenses |
33,000 |
17,500 |
|
Establishment expenses |
12,500 |
3,500 |
|
Plant installed at cost |
40,000 |
35,000 |
|
Value of plant (December 31) |
32,500 |
32,000 |
|
Cost of work not yet certified |
11,500 |
5,000 |
|
Value of work certified |
2,10,000 |
67,500 |
|
Cash received from contractees |
1,89,000 |
62,500 |
|
Architect’s fees |
1,000 |
500 |
During the period, materials amounting to Rs. 4,500 have been transferred from Contract 105 to Contract 106. The date of commencement of Contract No.105 is 1 April and Contract No. 106 is1 September. You are required to show:
- Contract Accounts
- Contractee’s Accounts, and
- Extract from Balance Sheet as on 31 December, clearly showing the calculation of WIP.