Question

A company undertook a contract for construction of a large building complex. The construction work commenced on 1" April 2015 and the following date are available for the year ended 31" march 2016 Rs. 000 Contract price 35.000 Work certified 20.000 Progress payments received 15.000 Material issued to site 7.500 Planning & estimating cost 1.000 Direct wages paid 4,000 Material returned from site 250 Plant Hire charges 1,750 Wage Relate costs 500 Site office costs 678 Head office expenses Apportioned 375 Direct Expenses incurred 902 Work not certified 149 The contractor own a plant which originally cost Rs.20,00,000 has been continuously in use in this contract throughout the year. The residual value of the plant after 5 year of life is expected to be wages due Rs. 5,00,000. Straight line method of depreciation is in use. As on 31'' march 2016 the direct and payable amounted to Rs.2,70,000 and the material at site were estimated at Rs.2,00,000 Required:- (A) Prepare the contract account for the year ended 31" march 2016​

Answer 1

Answer:

company undertook a contract for construction of a large building complex. The construction work commenced on 1st April 1997 and the following data are available for the year ended 31st March 1998.

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Rs '000

Rs '000

Contract price

35,000

Plant hire charges

1,750

Work certified

20,000

Wages related costs

500

Progress payments received

15,000

Site office costs

678

Materials issued to site

7,500

Head office expenses apportioned

375