Homework Help is Here – Start Your Trial Now!
Business
Accounting
You are required to prepare a Contract Account for the perlod ended 31st March 2014 showing the amount to be transferred to profit & loss account.

You are required to prepare a Contract Account for the perlod ended 31st March 2014 showing the amount to be transferred to profit & loss account.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Bharat construction company undertook the construction of a bullding at a contract price of Rs.4,00,00,000. The contract price will be realised in instalments on the basis of the value of work certified subject to retention of 10 %. The date of commencement of contract was 1st May 2013. The following cost information is given for the period ended 31st March 2014.: • Direct material sent to the site - 5000 tons @ Rs. 3000 per ton • Indirect Materlal Rs. 13,00,000 • Direct labour - 12,000 Mandays @ 360 per manday Indirect labour is charged to the contract @ 7.5% of direct labour Subcontract charges is charged to the contract @ 15% of Indirect Material, • Direct materials returned to stores 20 tons. • Direct materials lost in an accident 5 tons. Supervision charges paid Rs. 16,000 per month Administrative overheads incurred Rs. 24,000 per month. • Architect fees charged at 2% of work certified. Plant and machinery costing Rs. 30,00,000 installed at site on the date of commencement of contract, which is to be depreclated @ 12 % p.a. under original cost method. •Cash recelved from contractee Rs. 2,52,00,000. • Direct Material at site as on 31st March 2014 -15 tons • Cost of Work done but not certifled was Rs. 4,09,000 on 31st March 2014. You are required to prepare a Contract Account for the period ended 315t March 2014 showing the amount to be transferred to profit & loss account.
Transcribed Image Text:Bharat construction company undertook the construction of a bullding at a contract price of Rs.4,00,00,000. The contract price will be realised in instalments on the basis of the value of work certified subject to retention of 10 %. The date of commencement of contract was 1st May 2013. The following cost information is given for the period ended 31st March 2014.: • Direct material sent to the site - 5000 tons @ Rs. 3000 per ton • Indirect Materlal Rs. 13,00,000 • Direct labour - 12,000 Mandays @ 360 per manday Indirect labour is charged to the contract @ 7.5% of direct labour Subcontract charges is charged to the contract @ 15% of Indirect Material, • Direct materials returned to stores 20 tons. • Direct materials lost in an accident 5 tons. Supervision charges paid Rs. 16,000 per month Administrative overheads incurred Rs. 24,000 per month. • Architect fees charged at 2% of work certified. Plant and machinery costing Rs. 30,00,000 installed at site on the date of commencement of contract, which is to be depreclated @ 12 % p.a. under original cost method. •Cash recelved from contractee Rs. 2,52,00,000. • Direct Material at site as on 31st March 2014 -15 tons • Cost of Work done but not certifled was Rs. 4,09,000 on 31st March 2014. You are required to prepare a Contract Account for the period ended 315t March 2014 showing the amount to be transferred to profit & loss account.
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Characteristics Of Insurance
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS