Brown & Co. Ltd. Began to trade on January 1, 1998. During 1998 the Company was engaged on only one contract, the contra

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Brown Co Ltd Began To Trade On January 1 1998 During 1998 The Company Was Engaged On Only One Contract The Contra 1 (62.11 KiB) Viewed 12 times

Brown & Co. Ltd. Began to trade on January 1, 1998. During 1998 the Company was engaged on only one contract, the contract price of which was fixed at $. 1,50,000. Of the plant and materials charged to the contract, portions of the plant which cost $. 1,500 and materials which cost $. 1,200 were lost. On December 31, 1998, portions of the plant which cost $. 1,500 was returned to the stores, the cost of work done but uncertified was $. 600 and materials costing $. 1,200 were in hand on site. Charge 10% depreciation on plant, reserve 1/3 of profit received and prepare the Contract Account and the Balance Sheet from the following Trial Balance: $. $ Share capital Creditors 36,000 Cash received on contract 3,000 (80% of the work certified) 60,000 Land and buildings Bank balance Charged to contract: Materials Plant Wages Expenses 12,900 7,500 27,000 7,500 42,000 2,100 99,000 99,000