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.