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the following is the information relating to a contract account vcontract price 600000raw material. 120000wages 160000subcontract. 5000plant. 20000material transport toother. contract 2000general expenses 7600 as on 31/3/15,cash received 240000being 80%of work certified.the value of unused materials@site amounted to ₹18000.plants is to be depriciated @20%prepare contract account
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the following is the information relating to a contract account vcontr...
Contract Account
Contract Price: ₹600,000
Raw Material: ₹120,000
Wages: ₹160,000
Subcontract: ₹5,000
Plant: ₹20,000
Material Transport to Other Contract: ₹2,000
General Expenses: ₹7,600
Cash Received: ₹240,000 (80% of work certified)
Value of Unused Materials at Site: ₹18,000
Plant Depreciation: 20%
Preparing the Contract Account
1. Contract Price
Particulars | Amount
---|---
Contract Price | ₹600,000
2. Direct Costs
Particulars | Amount
---|---
Raw Material | ₹120,000
Wages | ₹160,000
Subcontract | ₹5,000
Material Transport to Other Contract | ₹2,000
Total Direct Costs | ₹287,000
3. Indirect Costs
Particulars | Amount
---|---
Plant Depreciation | ₹4,000 (20% of ₹20,000)
General Expenses | ₹7,600
Total Indirect Costs | ₹11,600
4. Total Costs
Particulars | Amount
---|---
Direct Costs | ₹287,000
Indirect Costs | ₹11,600
Total Costs | ₹298,600
5. Profit/Loss
Particulars | Amount
---|---
Contract Price | ₹600,000
Total Costs | ₹298,600
Profit | ₹301,400
6. Cash Flows
Particulars | Amount
---|---
Cash Received | ₹240,000
Unused Materials at Site | ₹18,000
Total Cash Inflows | ₹258,000
Total Costs | ₹298,600
Net Cash Outflow | (₹40,600)
Conclusion
Based on the calculations, the contract has a profit of ₹301,400. However, the net cash outflow is (₹40,600) due to the fact that only 80% of the work has been certified and cash received. The value of unused materials at site has also been taken into consideration. The plant has been depreciated at 20%.
Contract Price: ₹600,000
Raw Material: ₹120,000
Wages: ₹160,000
Subcontract: ₹5,000
Plant: ₹20,000
Material Transport to Other Contract: ₹2,000
General Expenses: ₹7,600
Cash Received: ₹240,000 (80% of work certified)
Value of Unused Materials at Site: ₹18,000
Plant Depreciation: 20%
Preparing the Contract Account
1. Contract Price
Particulars | Amount
---|---
Contract Price | ₹600,000
2. Direct Costs
Particulars | Amount
---|---
Raw Material | ₹120,000
Wages | ₹160,000
Subcontract | ₹5,000
Material Transport to Other Contract | ₹2,000
Total Direct Costs | ₹287,000
3. Indirect Costs
Particulars | Amount
---|---
Plant Depreciation | ₹4,000 (20% of ₹20,000)
General Expenses | ₹7,600
Total Indirect Costs | ₹11,600
4. Total Costs
Particulars | Amount
---|---
Direct Costs | ₹287,000
Indirect Costs | ₹11,600
Total Costs | ₹298,600
5. Profit/Loss
Particulars | Amount
---|---
Contract Price | ₹600,000
Total Costs | ₹298,600
Profit | ₹301,400
6. Cash Flows
Particulars | Amount
---|---
Cash Received | ₹240,000
Unused Materials at Site | ₹18,000
Total Cash Inflows | ₹258,000
Total Costs | ₹298,600
Net Cash Outflow | (₹40,600)
Conclusion
Based on the calculations, the contract has a profit of ₹301,400. However, the net cash outflow is (₹40,600) due to the fact that only 80% of the work has been certified and cash received. The value of unused materials at site has also been taken into consideration. The plant has been depreciated at 20%.
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the following is the information relating to a contract account vcontr...
Kushagra Agarwal
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the following is the information relating to a contract account vcontract price 600000raw material. 120000wages 160000subcontract. 5000plant. 20000material transport toother. contract 2000general expenses 7600 as on 31/3/15,cash received 240000being 80%of work certified.the value of unused materials@site amounted to ₹18000.plants is to be depriciated @20%prepare contract account Related: Contract Costing - Method of Costing, Cost Accounting?
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the following is the information relating to a contract account vcontract price 600000raw material. 120000wages 160000subcontract. 5000plant. 20000material transport toother. contract 2000general expenses 7600 as on 31/3/15,cash received 240000being 80%of work certified.the value of unused materials@site amounted to ₹18000.plants is to be depriciated @20%prepare contract account Related: Contract Costing - Method of Costing, Cost Accounting? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about the following is the information relating to a contract account vcontract price 600000raw material. 120000wages 160000subcontract. 5000plant. 20000material transport toother. contract 2000general expenses 7600 as on 31/3/15,cash received 240000being 80%of work certified.the value of unused materials@site amounted to ₹18000.plants is to be depriciated @20%prepare contract account Related: Contract Costing - Method of Costing, Cost Accounting? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for the following is the information relating to a contract account vcontract price 600000raw material. 120000wages 160000subcontract. 5000plant. 20000material transport toother. contract 2000general expenses 7600 as on 31/3/15,cash received 240000being 80%of work certified.the value of unused materials@site amounted to ₹18000.plants is to be depriciated @20%prepare contract account Related: Contract Costing - Method of Costing, Cost Accounting?.
the following is the information relating to a contract account vcontract price 600000raw material. 120000wages 160000subcontract. 5000plant. 20000material transport toother. contract 2000general expenses 7600 as on 31/3/15,cash received 240000being 80%of work certified.the value of unused materials@site amounted to ₹18000.plants is to be depriciated @20%prepare contract account Related: Contract Costing - Method of Costing, Cost Accounting? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about the following is the information relating to a contract account vcontract price 600000raw material. 120000wages 160000subcontract. 5000plant. 20000material transport toother. contract 2000general expenses 7600 as on 31/3/15,cash received 240000being 80%of work certified.the value of unused materials@site amounted to ₹18000.plants is to be depriciated @20%prepare contract account Related: Contract Costing - Method of Costing, Cost Accounting? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for the following is the information relating to a contract account vcontract price 600000raw material. 120000wages 160000subcontract. 5000plant. 20000material transport toother. contract 2000general expenses 7600 as on 31/3/15,cash received 240000being 80%of work certified.the value of unused materials@site amounted to ₹18000.plants is to be depriciated @20%prepare contract account Related: Contract Costing - Method of Costing, Cost Accounting?.
Solutions for the following is the information relating to a contract account vcontract price 600000raw material. 120000wages 160000subcontract. 5000plant. 20000material transport toother. contract 2000general expenses 7600 as on 31/3/15,cash received 240000being 80%of work certified.the value of unused materials@site amounted to ₹18000.plants is to be depriciated @20%prepare contract account Related: Contract Costing - Method of Costing, Cost Accounting? in English & in Hindi are available as part of our courses for B Com.
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