Question

4. “Under contract costing, system of 'progress payment is used". In the light of this
statement give the meaning and its relevance.
Also prepare a contract account from the following information, and show how much part
of profit will be transferred to costing P&L account.
Contract price
Rs. 18,00,000
Labour cost on site
Rs.420,000
Materials direct to site
Rs.325,000
Materials from the stores
Rs.78,000
Hire and Use of Plant
Rs. 10,200
Direct Expenses
Rs.13,300
General Overhead allocated
Rs.37.000
Material at hand on 30th June, 2020
Rs.6,100
Wages Accrued on 30th June 2020
Rs.6,800
Direct expenses accrued on 30th June, 2020
Rs. 1.400
Work not yet certified at cost
Rs. 18,500
Work Certified by Engineer
Rs. 10,00,000
Cash Received
80%​

Answer 1

Answer:

Explanation:

statement give the meaning and its relevance.

Also prepare a contract account from the following information, and show how much part

of profit will be transferred to costing P&L account.

Contract price Rs.18,00,000

Labour cost on site Rs.420,000

Materials direct to site Rs.325,000

Materials from the stores Rs.78,000

Hire and Use of Plant Rs.10,200

Direct Expenses Rs.13,300

General Overhead allocated Rs.37,000

Material at hand on 30th June, 2020 Rs.6,100

Wages Accrued on 30th June 2020 Rs.6,800

Direct expenses accrued on 30th June, 2020 Rs.1,400

Work not yet certified at cost Rs.18,500

Work Certified by Engineer Rs.10,00,000

Cash Received 80%​

Answer 2

Answer:

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