A construction company took a contract for the construction of a certain building on 1 January 2009. The contract price was agreed at Rs. 40,00,000. The company had made the following expenditure during the year:
|
Direct materials purchased |
1,00,000 |
|
Materials issued from stores |
1,50,000 |
|
Direct labour |
1,50,0000 |
|
Plant |
4,00,000 |
|
Direct expenses |
1,00,000 |
From the following information, prepare a contract account and find out the value of tender:
|
Direct materials purchased |
1,00,000 |
|
Value of plant on 31 December 2009 |
3,00,000 |
|
Stock of materials at site |
50,000 |
|
Materials returned to stores |
10,000 |
|
Cash received from contractee |
7,00,000 |
|
Cost of work not yet certified |
40,000 |
[As the work certified is less thanth (25%) of the contract price, no profit would be taken to P&L A/c. WIP = Rs. 5,40,000]
[Model: Work certified is 1/4th or more than 1/4th but less than 1/2 of the contract price]