Problem 5 Following Trial Balance was extracted on 31st December, 2018 form the books of...
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Problem 5 Following Trial Balance was extracted on 31st December, 2018 form the books of Swast Co. Ltd., Contactors: $ $ 3,51,800 25,000 63,000 12,80,000 81,200 Share Capital : Shares of 10 each Profit and Loss A/c on 1st Jan., 2018 Provision for Depreciation of Machinery Cash received on Account : Contract 7 Creditors Land and Buildings (Cost) Machinery (Cost) Bank Contract 7: Materials Direct Labour Expenses Machinery at site (Cost) 74,000 52,000 45,000 6,00,000 8,30,000 40,000 1,60,000 18,01,000 18,01,000 Contract 7 was begun on 1st Jan., 2018. The contract price is $24,00,000 and the customer has so far paid $ 12,80,000, being 80% of the work certified. The cost of the work done since certification is estimated at $ 16,000. On 31st Dec., 2018, after the above Trial Balance was extracted, machinery costing $ 32,000 was returned to stores, and materials when at site were valued at $ 27,000. Provision is to be made for direct labour due $ 6,000 and for depreciation of all machinery at 12% on cost. You are required to prepare (a) the Contract Account and (6) the Balance Sheet of Swast Co. Ltd. as on 31st December assuming this was the only contract in hand during the period
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