Sub contractor

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A contractor has sub contracted a civil contract to two sub contractors.

The Sub Contractors have then purchased the materials required for the Contract and there is some stock left at the end of the year.

My query is whether the Stock purchased by the Sub Contractors would be reflected in any way in the books of the Principal Contractor.

Hope I will get a positive reply soon.

Replies (1)

Vinod,

If subcontractors claim amount for material as well as labour to the contractor and get paid for both then stock will not be shown in the contaractor's books, 

or if subcontractors are getting paid for only labour and material bills purchased by them are given to the contractor then he can show closing stock in his books.


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