Page 240 - DCOM202_COST_ACCOUNTING_I

Cost Accounting – I

Notes Materials 31 March, 2009 ` 37,500
st
plant 31 March, 2009 ` 1,12,500
st
Cash received from contractee ` 3,00,000
Materials returned to stores ` 5,000
Work certified ` 3,50,000
Cost of work uncertified ` 1,25,000
Prepare Contract Account and Work-in-progress Account assuming that the contract price
was ` 12,00,000. How will work-in-progress appear in the Balance Sheet of the contractor?
[Important note: Since the amount of cash received from contractee is more than the balance
of work-in-progress, cash received from contractee will be shown in liability side of Balance
Sheet.]
20. Mr. Kartik started contract on 1 April, 2008 and incurred the following expenses on the
st
contract during the year 2008-09:
Materials purchased ` 60,000
Direct wages ` 65,000
plant used ` 25,000
Direct expenses ` 12,500
Other Information’s:
Contract price ` 5,00,000
Work certified ` 3,75,000
Cash received 75% of work certified —
Work uncertified ` 12,500
Materials in hand ` 5,000
Material lost ` 3,750
plant lost ` 6,250
plant returned to stores 31 March, 2009 ` 2,500
st
Depreciation charge @10% per annum on plant. prepare Contract Account and point out
how much profit is to be taken to Profit and Loss Account?
21. A building contractor have undertaken construction work at contract price of ` 6,25,000
began the execution of work on 1 April, 2008. The following are the particulars of the
st
contract up to 31 March, 2009:
st
Materials issued from stores ` 4,000
purchase of materials ` 1,20,000
Wages ` 1,00,000
Indirect expenses ` 36,000
plant used ` 1,40,000
Material returned to stores ` 8,000
Materials lost by fire ` 2,000
Materials at site on 31 March, 2009 ` 4,000
st
plant at site on 31 March, 2009 ` 1,20,000
st

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