The following is a summary of the entries in a contract ledger as on \( 31^{\text{st}} \) Chaitra 2081. Material purchased Rs. 70,000 Material from…
BBS Cost and Management Accounting · 2082 · Solved Question with Answer
The following is a summary of the entries in a contract ledger as on \( 31^{\text{st}} \) Chaitra 2081.
| Material purchased | Rs. 70,000 |
| Material from store | Rs. 200,000 |
| Direct labour | Rs. 100,000 |
| Site office expenses | Rs. 30,000 |
| Other expenses | Rs. 10,000 |
| Plant installed | Rs. 200,000 |
| Sub-contract cost | Rs. 10,000 |
The additional information are as follows:
i. 5% of the value of work certified still remained to be certified.
ii. Material returned to store Rs. 8,000.
iii. Material costing Rs. 15,000 sold at a profit of Rs. 1,000. iv. Depreciation on plant @ 15 % p.a. v. Material at site Rs. 10,000 vi. Cash received from contractor Rs. 540,000 being 90% of work certified. vii. Contract price Rs. 900,000.
Required:
a. Contract account
b. Contractee's account
c. Work in progress account
d. Balance sheet