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ASSIGNMENT.2 Contract Costingdocx

The document outlines the financial particulars for contract costing related to Raja Engineers and Kamal Bros. It includes details on materials, labor, expenses, and cash received, along with requirements to prepare contract accounts and calculate profits or losses for the respective contracts. Additionally, it specifies the need for a balance sheet related to the contract for a building project.

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ummekhizra18
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54 views2 pages

ASSIGNMENT.2 Contract Costingdocx

The document outlines the financial particulars for contract costing related to Raja Engineers and Kamal Bros. It includes details on materials, labor, expenses, and cash received, along with requirements to prepare contract accounts and calculate profits or losses for the respective contracts. Additionally, it specifies the need for a balance sheet related to the contract for a building project.

Uploaded by

ummekhizra18
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

ASSIGNMENT-2 DATED: 8TH APRIL 2025

Contract Costing
1. The Following Particulars relate to a contract account of Raja Engineers for the year ended
31-03-2023: Rs
Material Sent to Site 170698
Labour 148750
Plant 30000
Direct Expenses 6334
Establishment Charges 8252
Material Returned to store 1098
Work Certified 390000
Work not Certified 9000
Material in hand at the end of year. 3776
Wages Accured 4800
Direct Expenditure accured 480
Value of Plant at the end of the year. 22000
Contact Price 500000
Cash Received 360000
You are required to prepare the contract account showing Profit transfereed to Profit & Loss
Account.

2. Kamal Bros. obtained a contract for building a factory for rupees 10 lakhs. Building
operation started on 1st April, 2022 and up to the end of March, 2023 they received from the
contractee a sum of Rs 3.90 lakhs being 75% of the amount due on the surveyor's
certificate. The following additional information is given from the books of the contractor:-

Rs Rs

Store issued to contract 2,00,000 Overheads allocated to the 15,000


contract

Store it site on 31st March 2023 10, 000 Work finished but not yet 12, 000
certified (cost)

Plant purchase for the contract 2, 00,000 Plant to be depreciated at 15%


per annum

direct expenses 35, 000

You are required to prepare an account showing the profit or loss on contract for the year
ending 31st March 2023. also state as to what amount of profit should be transferred to P&L
account by the contractor on 31st March 2023

3.The following balances were extracted from the books of a building contract on 31.03.2022
regarding contract no. 123

Material issued to site Rs. 6,27,200


Wages paid Rs. 7,34,550
Wages outstanding on 31.03.2022 Rs. 7, 200
Plant issued to site Rs. 60,000
Direct charges paid Rs. 25,150
Direct charges outstanding on 31.03.2022 Rs. 2,100
Establishment charges Rs. 56,500
Stock of materials at site on 31.03.2022 Rs. 12,000
Value of work certified on 31.03.2022 Rs. 16,50,000
Cost or work not yet certified Rs. 35,000
Cash received on account of architect’s certificate after
deduction by customer of 5% retention money Rs. 14,10,750

The work was commenced on April 1, 2021 and the contract price agreed at Rs. 24,50,000.
Prepare contract account for the year providing for depreciation of plant @25%. Calculate the
profit or loss in the contract to date. Set out also contractor’s balance sheet so far as it relates
to the contract.

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