M s New Century Builders have entered into a contract to build an office building complex for Rs 480 lakhs The work started in April 1997 and it is estimated that the contract will take 15 months to be completed Work has progressed as per schedule and the actual costs charged till March 1998 was as follows Particulars Amount Rs in lakhs Materials 112 20 Labor 162 00 Hire charges for equipment and other expenses 36 00 Establishment charges 32 40 The following information are available Particulars Amount Rs in lakhs Material in hand 31 st March 1998 10 50 Work certified of which Rs 324 lakhs have been paid as on 31 st March 1998 400 00 Work not certified as on 31 st March 1998 7 50 As per Management estimates, the following further expenditure will be incurred to complete the work Materials Rs 10 50 lakhs Labor Rs 16 00 lakhs Sub contractor Rs 20 00 lakhs Equipments hire and other charges Rs 3 00 lakhs Establishment charges Rs 6 90 lakhs You are required to compute the value of work in progress as on March 31st, 1998 after considering a reasonable margin of profit and show the appropriate accounts Make a provision for contingencies amounting to 5 of the total costs

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M/s New Century Builders have entered into a contract to build an office building complex for Rs.480 lakhs. The work started in April 1997 and

M/s New Century Builders have entered into a contract to build an office building complex for Rs.480 lakhs. The work started in April 1997 and it is estimated that the contract will take 15 months to be completed. Work has progressed as per schedule and the actual costs charged till March 1998 was as follows.

Particulars	Amount Rs.in lakhs
Materials	112.20
Labor	162.00
Hire charges for equipment and other expenses	36.00
Establishment charges	32.40

The following information are available:

Particulars	Amount- Rs.in lakhs
Material in hand 31_st March 1998	10.50
Work certified [of which Rs.324 lakhs have been paid] as on 31_st March 1998	400.00
Work not certified as on 31_st March 1998	7.50

As per Management estimates, the following further expenditure will be incurred to complete the work.

Materials: Rs.10.50 lakhs

Labor: Rs.16.00 lakhs

Sub-contractor: Rs.20.00 lakhs

Equipments hire and other charges: Rs.3.00 lakhs

Establishment charges: Rs.6.90 lakhs

You are required to compute the value of work-in-progress as on March 31st, 1998 after considering a reasonable margin of profit and show the appropriate accounts. Make a provision for contingencies amounting to 5% of the total costs.