ACC2232 - Cost Accounting (Solution to Contract Costing)

Just now, we have done some exercises and here is the answer for the said question...

Solution:

Contract Account

Particular	Amount         (RM)	Particular	Amount (RM)
To Materials	44,250	By Work-in-progress:
To Plant and Tools	12,200	Work Certified
To Labour Charges	56,180	( 1,00,000 x 100/80) 1,25,000
To General Charges	4,650	Work Uncertified          6,145	1,31,145
To Notional Profit c/d	25,290	By P & L account	1,300
		By materials return to store	2,125
		By Plant and Tools at site	8,000
	1,42,570		1,42,570
To P & L A/c ( 25,290 x 2/3)	16,860	By Notional Profit b/d	25,290
To work in progress(reserve)	8,430
	25,290		25,290

Balance Sheet as at 31-3-2015

	Liabilities	RM	Assets	RM
	Share Capital	40,000	Bank	45,000
	P & L A/c                        16,860		Land and Building	25,000
	Less :                                 1,300	15,560	Plant and Tools	8,000
	Sundry CreditoRM	4,380	Materials at store	2,125
			Contract A/C  :
			Work in progress
			Work Certified      1,25,000
			Work uncertified       6,145
			Less : Reserve             8,430
			Less : Cash Recd.  1,00,000	22,715
		59,940		59,940