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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
(Valuation of work uncertified) Meenakshi Company Limited undertook a contract for construction of a bridge on 1-1-1997. The contract is expected to be completed by 30-6-1998. The contract price is Rs 8,00,000. You are required to prepare the contract account for the year ending 31-12-1997 from the following data:
| Â |
Rs |
|
Materials issued |
2,00,000 |
|
Wages |
75,000 |
|
Materials returned to stores |
10,000 |
|
Plant used for full year |
2,00,000 |
|
General overheads |
80,000 |
|
Depreciation of plant 10% supervisors’ salary |
10,000 |
|
Work certified |
5,00,000 |
Cash received is 80% of work certified. Ten per cent of materials issued and 15% of wages may be taken to have been incurred for the portion of work completed but not yet certified. General overheads are charged as percentage of direct wages.
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