Contract costing

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Mr.
44 Points Posted on 16 January 2014

What are the treatments for the following transactions in contract costing contract A/c?

1.Donations to local club

2.Land purchased near to the site to open an office

3.Brokerage and commission Paid on the purchase of above land

 

Also how to calculate wip work uncertified if its not given the question?

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On 16 January 2014 at 20:58 Report
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STUDENT CA-IPCC CMA INTER
36 Points Posted on 16 January 2014

DONATIONS ARE NOT PART OF CONTRACT A/c.WILL GO TO P/L A/C..

LAND WILL BE SHOWN IN B/S.

COST OF WORK UNCERTIFIED WILL BE CALCULATED AS PER THE INFORMATION OF THE QUESTION

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On 16 January 2014 at 23:21
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Mr.
44 Points Posted on 16 January 2014
If the question is silent about work uncertified, how to calculate?
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On 16 January 2014 at 23:26
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Mr.
44 Points Posted on 16 January 2014
Notional profit cannot be calculated without knowing work uncertified.
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On 16 January 2014 at 23:32
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STUDENT CA-IPCC CMA INTER
36 Points Posted on 16 January 2014

THEN YOU HAVE TO FIND % OF MATERIAL,LABOUR AND OVERHEAD PORTION RELATED TO COST OF WIP

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On 16 January 2014 at 23:36
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STUDENT CA-IPCC CMA INTER
36 Points Posted on 16 January 2014

WRITE THE INFO OF QUESTION PROPERLY

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On 16 January 2014 at 23:37
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Mr.
44 Points Posted on 16 January 2014
OK, they have given contact price, work certified and costs till date. While preparing the contact account I debited the relevant expenses and on the credit side work certified and materials closing stock. Can't find the work uncertified. They have also given that 50% of the completed work will be certified and 2/3 rd of the contact price has been completed.
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On 16 January 2014 at 23:46
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STUDENT CA-IPCC CMA INTER
36 Points Posted on 16 January 2014

YOU R SAYING 50% OF THE COMPLETED WORK WILL BE CERTIFIED THATS MEANS THIS PORTION IS UN-CERTIFIED

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On 16 January 2014 at 23:54
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STUDENT CA-IPCC CMA INTER
36 Points Posted on 16 January 2014

DID YOU WRITE 2/3 OF CONTRACT PRICE AS VALUE OF WORK CERTIFIED
 

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On 16 January 2014 at 23:56
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Mr.
44 Points Posted on 17 January 2014
No, the question is the value of work uncertified should not include profit. I wrote 2/3*contact price*50% as work certified. But cannot find the cost portion of the work uncertified.
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On 17 January 2014 at 07:35

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