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Particulars Amt Rs. Amt Rs. Work In Progress Work Certified 56,50,000 Work uncertified 1,00,000 57,50,000 Less: Reserve 6,30,000 51,20,000 Less: Cash Received 50,85,000 35,000 Plant

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Particulars Amt Rs. Amt Rs. Work In Progress Work Certified 56,50,000 Work uncertified 1,00,000 57,50,000 Less: Reserve 6,30,000 51,20,000 Less: Cash Received 50,85,000 35,000 Plant at Site 50,000 Illustration The following particulars relate to the houses which a firm of builders had in course of construction under contract: House A House B 14,000 33 23,000 16,600 14.000 20,000 1,400 300 8,000 Particulars WIP on 1.1.2008 (excluding Rs. 800 estimated profit which was taken to P&L A/c in 2007) Materials purchased Wages Electrical Services and Fittings Road Making Charges Contract Price (including road making) Cash received up to 31.12.2008 Percentage of cash received to work certified Value of materials in hand on 31.12.2008 Completed work not certified Value of plants used on sites Period of plants remained on site during the year 60,000 40,000 60,000 24,000 66.67% 100% 400 540 2,500 12.000 6,000 10 months 8 months Total Establishment expenses incurred during the year - Rs. 12,240. These are to be charged to the two contracts in proportion of wages. Deprecation on plant to be charged @ 10% p.a

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