A firm of contractors undertook a contract for $ 6,00,000 on October 1, 2017. The following expenses were incurred up to March 31, 2018 Materials Issued from Stores $ 7,500 ; Materials Sent Directly $ 52,500 ; Wages $ 30,000; Direct Charges $ 3,000. The amount of work certified was $ 1,20,000 of which the contractor received 3/4th in cash. The transactions for the year 2018-19 were s follows: Materials Issued from Stores $ 1,35,000 ; Wages $ 60,000 ; Direct Charges $ 6,000. The cost of special plant issued on April 1, 2018 for the contract was $ 1,20,000. Further work certified during the year amounted to $ 3,30,000 – 75% of which was received. Work done and not certified as on 31-3-19 was valued at $ 22,500. Special plant is to be depreciated at 25% p.a. on the original cost. Materials on site were valued at $ 15,000. The contract was completed on 31-7-19 up to which date the following further expenses were incurred : Amount ($) Materials Issued from Stores 10,500 Materials Sent Directly 60,000 Wages 22,500 Direct Expenses 2,025 The general overheads are to be taken at 5% of the material consumed and wages paid during the year. On 31-7-19, the plant was valued at $ 75,000. The materials at site were sold for $ 10,500 at cost and those returned to stores amounted to $ 19,500. Transfer 3/4th of profits received to P&L Account during 2018-19. Account for 2017-18, 2018-19 and from You are to prepare contract accounts and contractee's April 1, 2019 till completion of contract.
A firm of contractors undertook a contract for $ 6,00,000 on October 1, 2017. The following expenses were incurred up to March 31, 2018 Materials Issued from Stores $ 7,500 ; Materials Sent Directly $ 52,500 ; Wages $ 30,000; Direct Charges $ 3,000. The amount of work certified was $ 1,20,000 of which the contractor received 3/4th in cash. The transactions for the year 2018-19 were s follows: Materials Issued from Stores $ 1,35,000 ; Wages $ 60,000 ; Direct Charges $ 6,000. The cost of special plant issued on April 1, 2018 for the contract was $ 1,20,000. Further work certified during the year amounted to $ 3,30,000 – 75% of which was received. Work done and not certified as on 31-3-19 was valued at $ 22,500. Special plant is to be depreciated at 25% p.a. on the original cost. Materials on site were valued at $ 15,000. The contract was completed on 31-7-19 up to which date the following further expenses were incurred : Amount ($) Materials Issued from Stores 10,500 Materials Sent Directly 60,000 Wages 22,500 Direct Expenses 2,025 The general overheads are to be taken at 5% of the material consumed and wages paid during the year. On 31-7-19, the plant was valued at $ 75,000. The materials at site were sold for $ 10,500 at cost and those returned to stores amounted to $ 19,500. Transfer 3/4th of profits received to P&L Account during 2018-19. Account for 2017-18, 2018-19 and from You are to prepare contract accounts and contractee's April 1, 2019 till completion of contract.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A firm of contractors undertook a contract for $ 6,00,000 on October 1, 2017. The following expenses
were incurred up to March 31, 2018
Materials Issued from Stores $ 7,500 ; Materials Sent Directly $ 52,500 ; Wages $ 30,000; Direct
Charges $ 3,000.
The amount of work certified was $ 1,20,000 of which the contractor received 3/4th in cash.
The transactions for the year 2018-19 were s follows:
Materials Issued from Stores $ 1,35,000 ; Wages $ 60,000 ; Direct Charges $ 6,000.
The cost of special plant issued on April 1, 2018 for the contract was $ 1,20,000. Further work certified
during the year amounted to $ 3,30,000 – 75% of which was received. Work done and not certified as
on 31-3-19 was valued at $ 22,500. Special plant is to be depreciated at 25% p.a. on the original cost.
Materials on site were valued at $ 15,000. The contract was completed on 31-7-19 up to which date
the following further expenses were incurred :
Amount ($)
Materials Issued from Stores
10,500
Materials Sent Directly
60,000
Wages
22,500
Direct Expenses
2,025
The general overheads are to be taken at 5% of the material consumed and wages paid during the
year.
On 31-7-19, the plant was valued at $ 75,000. The materials at site were sold for $ 10,500 at cost and
those returned to stores amounted to $ 19,500. Transfer 3/4th of profits received to P&L Account
during 2018-19. Account for 2017-18, 2018-19 and from
You are to prepare contract accounts and contractee's April 1, 2019 till completion of contract.
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