The following Trial Balance was extracted from the books of a contractor as on 31 December 2009:
|
Dr Rs. |
Cr Rs. |
|
|
Share capital |
– |
2,40,000 |
|
Creditors |
– |
24,000 |
|
Land and Building |
1,02,000 |
– |
|
Cash at bank |
27,000 |
– |
|
Materials |
2,40,000 |
– |
|
Plant |
45,000 |
– |
|
Wages |
3,15,000 |
– |
|
Expenses |
15,000 |
– |
|
Cash received being 80%of the |
– |
4,80,000 |
|
work certified |
||
|
7,44,000 |
7,44,000 |
Of the plant and materials charged to the contract plant costing Rs. 6,000, materials costing Rs. 6,000 were destroyed by an accident. On 31 December 2009, the plant which cost Rs. 12,000 was returned to stores. The value of materials on site was Rs. 12,000 and the cost of work done but not certified was Rs. 6,000. Charge depreciation was at 10%on plant and carry to P&L A/c 2/3rd of profit on cash basis, after preparing the contract account.