Question

060932. NOTE SCREENSHOT PROHIBITED The following expenditure was incurred on a contract of L&T Ltd for the year ending 31-12-2020 Materials Rs. 240000, Wages Rs. 328000 Plant Rs. 40000, Expenses Rs. 17200. Cash received on account of the contract to 3151 Dec 2020 was Rs. 480000, being 80% of the work certified. The value of materials in hand was Rs. 20000. The plant had undergone 20% depreciation. What will be the amount of work in progress? ​

Answer 1

Answer:

sorrrrrrrrrrrrrryyyyyy

Answer 2

Answer:

Explanation:

Contract Account for the year ending 31st December, 2015

Particulars                                            Particulars                                                

To Materials         2,40,000       By Materials in hand 20,000

To Wages              3,28,000     By Plant in hand (40,000 less 20%) 32,000

To Plant                  40,000

To Overheads          17,200      By Work-in-progress

To Notional Profit c/d 26,800      Work certified    4 80 000 *100/ 80

                                                                                                          =6,00,000

                                 6,52,000                                                          6,52,000

To Profit & Loss A/c          14,293          By Notional Profit b/d          26,800

(26,800 × 2/3 × 80%)

To Reserve                       12,507                                                                            

                                          26,800                                                       26,800