contractor makes up his accounts on 31st December in each year. Contract No. 21 commenced on 1st April, 1997. The costing records yield the following information as at 31st December, 1997: A machine costing Rs. 15,000 has been on the site for 73 days. Its working life is estimated at five years and its final scrap value is Rs. 1,000. A supervisor, who is paid Rs. 1,000 per month has spent approximately one half of his time on this contract. All other expenses amount to Rs. 12,610 Materials in store at site on 31st December, 1997 cost Rs. 2480. The contract price is Rs. 2,00,000. On 31st December 1997, two-thirds of the contract was completed; architect's certificates had been issued covering Rs. 1,00,000; Rs. 80,000 h
A contractor makes up his accounts on 31st December in each year. Contract No. 21 commenced on 1st April, 1997. The costing records yield the following information as at 31st December, 1997:
A machine costing Rs. 15,000 has been on the site for 73 days. Its working life is estimated at five years and its final scrap value is Rs. 1,000.
A supervisor, who is paid Rs. 1,000 per month has spent approximately one half of his time on this contract.
All other expenses amount to Rs. 12,610
Materials in store at site on 31st December, 1997 cost Rs. 2480.
The contract price is Rs. 2,00,000. On 31st December 1997, two-thirds of the contract was completed; architect's certificates had been issued covering Rs. 1,00,000; Rs. 80,000 has so far been paid on account.
Prepare a contract account and state how much profit or loss should be included in the financial accounts to 31st December, 1997.
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