Question

A firm of building contractors began to trade on 1st April, 2009. The following was the expenditure on the contract for Rs.300,000.
Material issued to contract Rs.51,000; Plant used for contract Rs.15,000; wages incurred Rs.81,000; other expenses incurred Rs.5000.

Cash received on account by 31st March,2010 amounted to Rs.128,000, being 80% of the work certified. Of the Plant and materials charged to the contract, Plant which cost Rs.3000 and materials which cost Rs. 2500 were lost. On 31st March 2010 Plant which cost Rs.2000 was returned to stores, the cost of work done but uncertified was Rs.1000 and materials costing Rs.2300 were in hand on site.
Charge 15% depreciation of plant and take to the profit and loss account 2/3 of the profit received. Prepare a Contract Account, Contractee’s account and Balance Sheet from the above particulars

Answer 1

Answer:

The following is the contract account