Modern Construction Ltd. obtained a contract No. B-37 for the $ 40 lakhs. The following information relate to the contract for the year ended 31st March, 2019: 01/04/2018 31/03/2019 $ •Work-in-progress: •Work certified •Work uncertified • Materials at site •Accrued wages 9,40,000 11,200 30,00,000 32,000 8,000 20,000 3,000 5,000 Additional informations relating to the year 2018-2019 are : •Materials issued from store • Materials directly purchased • Wages paid •Architect's Fees •Plant Hire Charges • Indirect Expenses 4,00,000 Share of General Overheads 1,50,000 for B-37 6,00,000 •Materials Returned to Store 51,000 •Materials Returned to Supplier 50,000 •Fines and Penalties paid 18,000 25,000 15,000 12,000 10,000 The contractee pays 80% pf the worke certified in Cash. You are required to prepare: (i) Contact Account showing clearly the Amount of profits transferred to Profit and loss Account (ii) Contractee's Account. (iii) Balance Sheet.

Modern Construction Ltd. obtained a contract No. B-37 for the $ 40 lakhs. The following information relate to the contract for the year ended 31st March, 2019: 01/04/2018 31/03/2019 $ •Work-in-progress: •Work certified •Work uncertified • Materials at site •Accrued wages 9,40,000 11,200 30,00,000 32,000 8,000 20,000 3,000 5,000 Additional informations relating to the year 2018-2019 are : •Materials issued from store • Materials directly purchased • Wages paid •Architect's Fees •Plant Hire Charges • Indirect Expenses 4,00,000 Share of General Overheads 1,50,000 for B-37 6,00,000 •Materials Returned to Store 51,000 •Materials Returned to Supplier 50,000 •Fines and Penalties paid 18,000 25,000 15,000 12,000 10,000 The contractee pays 80% pf the worke certified in Cash. You are required to prepare: (i) Contact Account showing clearly the Amount of profits transferred to Profit and loss Account (ii) Contractee's Account. (iii) Balance Sheet.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

Modern Construction Ltd. obtained a contract No. B-37 for the $ 40 lakhs. The following
information relate to the contract for the year ended 31st March, 2019:
01/04/2018
31/03/2019
•Work-in-progress:
•Work certified
•Work uncertified
• Materials at site
•Accrued wages
9,40,000
30,00,000
11,200
32,000
8,000
20,000
3,000
5,000
Additional informations relating to the year 2018-2019 are :
•Materials issued from store
• Materials directly purchased
• Wages paid
•Architect's Fees
•Plant Hire Charges
• Indirect Expenses
4,00,000 •Share of General Overheads
1,50,000 for B-37
6,00,000 •Materials Returned to Store
51,000 •Materials Returned to Supplier
50,000 •Fines and Penalties paid
10,000
18,000
25,000
15,000
12,000
The contractee pays 80% pf the worke certified in Cash. You are required to prepare:
(i) Contact Account showing clearly the Amount of profits transferred to Profit and loss Account
(ii) Contractee's Account.
(iii) Balance Sheet.

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