Question

The contract ledger of a company showed the following expenditure on Account of Contract No. 345 at 31st December, 2018 :

Materials 94,000
Plant 12,000
Wages 1,03,000
Establishment Charges 6,700.

The contract was commenced in Jan. 2018 and the contract price was ` 4,00,000. Cash received on account to date was ` 1,72,000 representing 80 percent of the work certified the remaining 20 percent being retained until completion. The value of material on hand was ` 4,500 and the work finished but not certified was ` 4,000. Prepare an account in respect of the contract showing profit to date assuming depreciation on plant at 10 percent per annum and state the proportion of profit the company would be justified in taking to credit of the Profit & Loss Account.

Answer 1

Profit.................xd

Answer 2

Explanation:

the answer is 9920

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