The following balances were extracted from the books of a building contract on 31st March, 2011 regarding Contract No. 123:

 

Rs

Materials issued to site

6,27,200

Wages Paid

7,34,550

Wages outstanding on 31.3.2011

7,200

Plant issued to site

60,000

Direct charges paid

25,150

Direct charges outstanding on 31.3.2011

2,100

Establishment charges

56,500

Stock of materials at site on 31.3.2011

12,000

Value of work certified on 31.3.2011

16,50,000

Cost of work not yet certified

35,000

Cash received on account of architect‘s

 

certificate after deduction by customer

 

of 5 percent retention money

14,10,750

The work was commenced on April 1, 2010 and the contract price agreed at Rs.24,50,000.

Prepare contract account for the year providing for depreciation of plant of 25 per cent. Calculate the Profit or Loss in the contract to date and make such provision in the contract account as you consider desirable. Set out also contractor‘s balance sheet so far as it relates to the contract.