What You Will Learn!
- Contract Costing
- Meaning of Contract Costing
- Methods of Contract Costing
- Types of Contract Price
- Some Practical Problem
Description
Contract Costing
Contents -
1 It is a method of costing
2 Used in construction industry
3 Relating to capital asset
4 Construction industry means- Road, Building, Dam, Bridge, Tunnels, Port etc.
Introduction to Contract Costing
Contract Costing Method
Accounts In the books of Contractor
1. Contract Account
2. Contractee’s Account
3. Work-in Progress Account
Meaning of Contract Account
Types of contract price
(i) Fixed contract price
(ii) Cost plus contract price
Types of contract
(i) Completed contract
(ii) Incomplete contract
Plant In Contract Costing
Presentation of Plant
Complete Contract :
Format of Complete Contract Account
Contractee’s Account (Complete Contract)
Entries of Contractee’s Account (Complete contract)
Complete Contract Questions
INCOMPLETE CONTRACT
1. Work Certified
2. Uncertified Work
Methods of computation of profit or loss on incomplete contract
In case of loss
Contract Account – Incompleted
Incomplete Contract Question
BALANCE SHEET
Entries of Contractee’s Account (Incomplete contract)
W O R K - I N - P R O G R E S S A C C O U N T
Reserve for Contingencies
Contract Account (Reserve for Contingencies)
Meaning of Contract : Account Contract account is principal account which is maintained by contactor. The main object of this account is to find out profit or loss on contract executed. Thus, contactor is to know the total cost and profit or loss from the contract account at the end of accounting period. Generally, each contactor has the number of contracts undertaken at a time because contract work is completed at site. Each contract is allotted a distinct number in order to identify and distinguish it from other contracts, e.g., contract no. 101, contract no. 102, etc.
Who Should Attend!
- Any Student who pursuing in B,com M,com BBA MBA 11th & 12th Commerce C.A. C.S. and C.M.A.
