The following information up to 9 months i.e. 30th Magh of a renowned company who undertook a contract for erecting a sewerage treatment plant for…
BBS Cost and Management Accounting · 2078 · Solved Question with Answer
The following information up to 9 months i.e. 30th Magh of a renowned company who undertook a contract for erecting a sewerage treatment plant for Lalitpur Metropolitan for a total value of Rs 2,000,000 are provided:• Material = Rs.300,000• Wages = Rs.400,000• Overhead = Rs.100,000• Plant = Rs.200,000• Work certified was for Rs.1,200,000 and 75% of the same was received in cash• Value of work uncertified was Rs.45,000• Material at site as on 30th Magh = Rs.30,000• Depreciation on plant is 15% per year• Ignore depreciation of plant for the use on uncertified portion of the work
Required:
a. Contract Account
b. Contractee's Account
c. Work in Progress Account
d. Balance Sheet .