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Problem 22

The document outlines the expenses and accounts related to a contract that commenced on January 1, 2005, with a total contract price of Rs. 1,50,000. It details the costs incurred, including materials, wages, and indirect expenses, and provides a summary of the contract and contractee's accounts for the year ending March 31, 2005. The final accounts reflect the total expenses and the amount received from the contract completion.

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40 views1 page

Problem 22

The document outlines the expenses and accounts related to a contract that commenced on January 1, 2005, with a total contract price of Rs. 1,50,000. It details the costs incurred, including materials, wages, and indirect expenses, and provides a summary of the contract and contractee's accounts for the year ending March 31, 2005. The final accounts reflect the total expenses and the amount received from the contract completion.

Uploaded by

charleschirwa477
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Problem 2.

The followmg were the expenses on a contract which cpmmenced on 1st January 2005. Rs. Materials
purchased 1,10,000 Material at the end 1,250 Direct wages 15,000 Plant issued 5,000 Direct expenses
8,000 The contract pnce was Rs. 1,50,000. It was duly received when the contract was completed on
30th September 2()1)). Charge indirect expenses at 15% on wages and provide Rs. 1,000 for depreciation
on plant. Prepan' the umtract account and contractee's account.

Soluti(Jn

('a,11 received is 100 -- 10'% = 90% of the bills or work certified. Thus work certified. Contract Account
for the year ending 31-3-2005

1'0 Matenals To Direct wages To DII cct cxpenscs;¥. To Indlrcct e"pl'n~cs ( 15% on 15:0()O) To Plant
IsslIcd To Profit and Loss A/c

Rs 1,10,000 15,000 8,000 2,250 5,000 15,000

1,55,250

By Contractce's A/c (Contract pnce) By Materials at the end By Plant at thc end (5,000 - I,OOD)

Contractee's Account for the year ending 31-3-2005

Rs. To Contract Alc 1,50,000 By Bank

1,50,000

Rs 1,50,000 1,250 4,000

1,55,250

Rs. 1,50,000

1,50,000

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