MITTAL COMMERCE CLASSES
IPCC – MOCK TEST
BATCH : LI – 21, 22 & 23
DATE: 21.11.2015
MAXIMUM MARKS: 100
TIMING: 2:00 PM to 5:00 PM
ACCOUNTS
Answer: 1
Cash Flow Statement from Investing Activities of
M/s Creative Furnishings Limited for the year ended 31-03-2015
Cash generated from investing activities
Rs.
Rs.
Interest on loan received
82,500
Pre-acquisition dividend received on investment made
62,400
Unsecured loans given to subsidiaries
(4,85,000)
Interest received on investments (gross value)
76,200
TDS deducted on interest
(8200)
Sale of Plant
74,400
Cash used in investing activities (before extra ordinary item)
(1,97,700)
Extraordinary claim received for loss of plant
49,600
Net cash used in investing activities (after extra ordinary item)
(1,48,100)
Notes:
1. Debenture interest paid and Term Loan repaid are financing activities and therefore not
considered for preparing cash flow from investing activities.
2. Plant acquired by issue of 8% debentures does not amount to cash outflow, hence also
not considered in the above cash flow statement.
Answer: 2
In the books of M/s. Care Traders
Bank Account as on 31.3.2015
Particulars
Amount Particulars
Amount
Dr. (Rs.)
Cr. (Rs.)
To Opening Balance
12,800 By Creditors (Payment made) (WN 6) 14,86,250
To Cash sales (WN 1)
5,58,000 By Machinery Purchased
1,14,000
To Debtors (collection made) (WN 4) 16,24,600 By Advertisement expenses
80,000
To Furniture (sold)
9,500 By Rent
1,32,000
By Travelling exp. (78,400+7,800)
86,200
By Repairs
36,500
By Petty Cash
28,300
By Interest on unsecured loan
8,750
By Balance c/d (bal. fig,)
2,32,900
22,04,900
22,04,900
Trading and Profit and Loss Account
For the year ended 31st March, 2015
Particulars
Amount Particulars
(Rs.)
To Opening Stock
1,72,000 By Sales (WN 1)
To Purchases (WN 2)
15,71,400 By Closing Stock
To Gross Profit b/d (WN 1)
6,69,600
24,13,000
Amount
(Rs.)
22,32,000
1,81,000
24,13,000
1|Page
MITTAL COMMERCE CLASSES
To Rent (1,32,000x12/11)
To Advertisement expenses
To Travelling expenses
To Repairs
To Petty Cash expenses
To Interest on unsecured loan
To Loss on sale of Furniture
To Depreciation
Machinery(WN8)
Furniture
To Net Profit
1,44,000
60,000
86,200
36,500
28,300
17,500
2,900
IPCC – MOCK TEST
By Gross Profit c/d
6,69,600
88,250
23,260
1,82,690
6,69,600
6,69,600
Balance Sheet of M/s. Care Traders as on 01.04.2015
Liabilities
Share Capital
Profit and Loss
Opening Balance
Add: Profit for the year
Unsecured loan @10%
Interest on unsecured loan
Trade Payable (WN 5)
Outstanding expenses Rent
Assets
Machinery
Gross block value (WN 7)
Less: depreciation
Furniture
Gross block value (WN 9)
Less: depreciation
Inventory
Trade Receivables (WN 3)
Prepaid expenses (Advertisement)
Bank balance
Rs.
10,00,000
1,47,800
1,82,690
9,39,500
(88,250)
1,16,300
(23,260)
3,30,490
1,75,000
8,750
1,30,950
12,000
16,57,190
8,51,250
93,040
1,81,000
2,79,000
20,000
2,32,900
16,57,190
Working Notes:
1. Sale for the year ended 31.03.2015
Last year Sales
Add growth @20%
Rs.
18,60,000
3,72,000
Sale for 2014-15 (A)
Cash Sales (25% of Rs. 22,32,000)
Credit sales (22,32,000 – 5,58,000)
22,32,000
5,58,000
16,74,000
Gross profit 30% on sales (B)
6,69,600
2|Page
MITTAL COMMERCE CLASSES
IPCC – MOCK TEST
2. Purchases for the year ended 31.03.2015
Cost of Sales (A-B) (22,32,000 -6,69,600)
Add Closing stock
Rs.
15,62,400
1,81,000
Less: Opening stock
17,43,400
(1,72,000)
Purchases during the year
15,71,400
3. Debtors as on 31.03.2015
Total credit sales
Debtors 2 months credit (16,74,000 x 2/12)
4.
To opening Balance
To Credit sales
5.
Collections from Debtors account
Dr. Amt.
(Rs.)
2,29,600 By Bank (collection) Bal .fig.
16,74,000 By Closing balance
19,03,600
Rs.
16,74,000
2,79,000
Cr. Amt.
(Rs.)
16,24,600
2,79,000
19,03,600
Creditors as on 31.03.2015
Rs.
Total Credit purchases (all creditors paid by cheque hence there are no cash
purchases)
Creditors 1 month credit (15,71,400 x 1/12)
6.
To Bank (Payment) Bal. fig.
To Closing Balance
7.
To Opening Balance
To Machinery Purchased
8.
Payment to Creditors account
Dr. Amt.
(Rs.)
14,86,250 By Opening Balance
1,30,950 By Credit Purchases
16,17,200
Machinery Account
Dr. Amt.
(Rs.)
8,25,500 By Closing Balance (Bal. fig.)
1,14,000
9,39,500
15,71,400
1,30,950
Cr. Amt.
(Rs.)
45,800
15,71,400
16,17,200
Cr. Amt.
(Rs.)
9,39,500
9,39,500
Depreciation on Machinery
Existing Machinery for 1 Year (Rs. 8,25,500 x 10%)
New Machinery (Purchased on 1.10.2014)
For 6 months (Rs. 1,14,000 x ½ x 10%)
Rs.
82,550
5,700
88,250
3|Page
MITTAL COMMERCE CLASSES
9.
To Opening Balance
IPCC – MOCK TEST
Furniture Account
Dr. Amt.
(Rs.)
1,28,700 By Bank (Sale )
By Loss on Sale
By Closing balance
1,28,700
Cr. Amt.
(Rs.)
9,500
2,900
1,16,300
1,28,700
Answer: 3
Rs.
56800
94000
150800
32900
117900
Opening balance of sports material
Add: Purchases during the year (cash 2350 + credit 70500)
Less: Closing Stock
Sports material used
(i) Total cost of sports material consumed in the Club 40% of used material was
consumed. (i.e. 40% of 117900)
(ii) Sale value of sports material
Cost of sports material sold (117900–47160) = 70740
Add: Profit @ 20% on cost
OR Remaining sold for Rs. [120% of 70740 (60% of 117900)]
Rs.
47160
70740
14148
84888
Working Note:
To Bank
To Balance c/d
Calculation of Credit purchase of Sports Material
Rs.
64300 By Balance b/d
29400 By Purchases (Balancing Figure)
93700
Rs.
23200
70500
93700
Answer: 4
Bumbum Limited
Journal Entries
2009
July 1
Equity Share Capital A/c (Rs. 10 each)
July 10
To Equity share capital A/c (Rs. 2 each)
(Being equity share of Rs. 10 each splitted into 5 equity
shares of Rs. 2 each) {1,50,000 X 2}
Cash & Bank balance A/c
Dr.
Dr.
Dr.
(Rs.)
3,00,000
3,00,000
5,55,000
To Investment A/c
July 10
4,90,000
To Profit & Loss A/c
(Being investment sold out and profit on sale credited to
Profit & Loss A/c)
8% Redeemable preference share capital A/c
Dr.
Premium on redemption of preference share A/c
Cr.
(Rs.)
Dr.
65,000
5,00,000
25,000
4|Page
MITTAL COMMERCE CLASSES
July 10
IPCC – MOCK TEST
To Preference shareholders A/c
(Being amount payable to preference share holders on
redemption)
Preference shareholders A/c
Dr.
5,25,000
5,25,000
To Cash & bank A/c
5,25,000
(Being amount paid to preference shareholders)
July 10
Aug. 1
Aug. 1
Sept. 5
Sept. 12
Sept. 30
Sept. 30
General reserve A/c
Dr.
To Capital redemption reserve A/c
(Being amount equal to nominal value of preference shares
transferred to Capital Redemption Reserve A/c on its
redemption as per the law)
5,00,000
9% Debentures A/c
Dr.
Interest on debentures A/c
Dr.
To Debentureholders A/c
(Being amount payable to debenture holders along with
interest payable)
2,50,000
7,500
Debentureholders A/c
To Cash & bank A/c (1,00,000 + 7,500)
To Equity share capital A/c {15,000 X 2}
To Securities premium A/c
(Being claims of debenture holders satisfied)
2,57,500
Dr.
5,00,000
2,57,500
1,07,500
30,000
1,20,000
Capital Redemption Reserve A/c
Dr.
To Bonus to shareholders A/c
(Being balance in capital redemption reserve capitalized to
issue bonus shares)
1,10,000
Bonus to shareholders A/c
Dr.
To Equity share capital A/c
(Being 55,000 fully paid equity shares of Rs. 2 each issued
as bonus in ratio of 1 share for every 3 shares held)
1,10,000
Securities Premium A/c
Dr.
To Premium on redemption of preference shares A/c
(Being premium on preference shares adjusted from
securities premium account)
25,000
Profit & Loss A/c
Dr.
To Interest on debentures A/c
(Being interest on debentures transferred to Profit and Loss
Account)
7,500
1,10,000
1,10,000
25,000
7,500
Balance Sheet as at 30th September, 2009
Particulars
Equity and Liabilities
1. Shareholders' funds
(a) Share capital
(b) Reserves and Surplus
2. Current liabilities
(a) Trade Payables
Notes
1
2
Total
Rs.
4,40,000
13,32,500
1,70,000
19,42,500
5|Page
MITTAL COMMERCE CLASSES
1.
2.
IPCC – MOCK TEST
Assets
Non-current assets
(a) Fixed assets
Tangible assets
(b) Deferred tax asset
Current assets
Trade receivables
Cash and cash equivalents
7,80,000
3,40,000
6,20,000
2,02,500
19,42,500
Total
Notes to accounts
1
Share Capital
Rs.
Rs.
Authorized share capital
2,50,000 Equity shares of Rs. 2 each
5,00,000
10,000 Preference shares of Rs.100 each
10,00,000
15,00,000
Issued, subscribed and paid up
2,20,000 Equity shares of Rs. 2 each
2
4,40,000
Reserves and Surplus
Securities Premium A/c
Balance as per balance sheet
Add: Premium on equity shares issued on conversion
of debentures (15,000 x 8)
6,00,000
1,20,000
7,20,000
Less: Adjustment for premium on preference
Shares
(25,000)
Balance
6,95,000
Capital Redemption Reserve(5,00,000-1,10,000)
3,90,000
General Reserve (6,50,000 – 5,00,000)
1,50,000
Profit & Loss A/c
1,80,000
Less: Preliminary expenses written off
(1,40,000)
Add: Profit on sale of investment
65,000
Less: Interest on debentures
(7,500)
Total
97,500
13,32,500
Working Notes:
Rs.
1.
2.
Redemption of preference share:
5,000 Preference shares of Rs. 100 each
Premium on redemption @ 5%
Amount Payable
Redemption of Debentures
2,500 Debentures of Rs. 100 each
Less: Cash option exercised by 40% holders
Conversion option exercised by remaining 60%
5,00,000
25,000
5,25,000
6|Page
MITTAL COMMERCE CLASSES
Equity shares issued on conversion =
3.
4.
5.
IPCC – MOCK TEST
1,50,000
= 15,000 shares.
10
Issue of Bonus Shares
Existing equity shares after split (30,000 x 5)
Equity shares issued on conversion
Equity shares entitled for bonus
Bonus shares (1 share for every 3 shares held) to be issued
Cash and Bank Balance
Balance as per balance sheet
Add: Realization on sale of investment
1,50,000
1,50,000
1,65,000
55,000
Less: Paid to preference share holders
Paid to Debentureholders (7,500 + 1,00,000)
Balance
Interest of Rs. 7,500 paid to debenture holders have been debited to Profit
& Loss Account.
shares
shares
shares
shares
2,80,000
5,55,000
8,35,000
(5,25,000)
(1,07,500)
2,02,500
Answer: 5
Statement of Profit and Loss* for the year ended 2008
a
b
Particulars
Profit
Expenses:
Rs.
10,00,000
c
Depreciation and amortization expense
Total expenses
Profit before tax (a-b)
(31,200)
(31,200)
9,68,800
d
e
Provision for tax
Profit (Loss) for the period
(80,000)
8,88,800
Balance of Profit and Loss account brought forward
Total
Appropriations (made in Notes to Accounts)
Transfers to Reserves
Proposed preference dividend (1,82,000 + 93,450)
80,000
9,68,800
(1,77,760)
(2,75,450)
Proposed equity dividend (1,40,000 + 1,86,900)
(3,26,900)
f
g
h
Bonus to employees (14,000 + 18,690)
Total
Balance carried to Balance sheet (f-g)
Working Note:
Balance of amount available for Preference and Equity shareholders
and Bonus for Employees
Credit Side
Less: Dr. side [1,77,760 + 1,82,000+1,40,000+14,000 + 1,56,000]
*
(32,690)
(8,12,800)
1,56,000
Rs.
9,68,800
(6,69,760)
2,99,040
As per revised Schedule VI (now Schedule III to the Companies Act, 2013), Statement of
Profit and Loss is to be prepared upto profit for the current year only. Any appropriation
to current year’s profit alongwith the brought forward profit is to be shown in the ‘Notes
to Financial Statements for Reserves and Surplus’.
7|Page
MITTAL COMMERCE CLASSES
IPCC – MOCK TEST
Suppose remaining balance will be = x
Suppose preference shareholders will get share from remaining balance =
x
1 1
 x
3 3
Equity shareholders will get share from remaining balance =
Bonus to Employees =
Now,
x
2 2
 x
3 3
2
10
2
x

x
3
100 30
2
1
2
x x
x  2,99,040
3
3
30
32x = 89,71,200
x = 89,71,200/32 = Rs. 2,80,350
Shares of preference shareholders – Rs. 2,80,350 
Share of equity shareholders –
Rs .2,80,350 
Bonus to employees – Rs. 2,80,350 ×
1
 Rs .93,450
3
2
 Rs .1,86,900
3
2
= Rs. 18,690
3
Answer: 6
As per AS 3 ‘Cash Flow Statements’, the term ‘Cash’ and ‘Cash equivalents’ mean the
following:
Cash: It includes cash on hand and demand deposits with banks.
Cash Equivalents: It means short -term, highly liquid investments that are readily
convertible into known amounts of cash and which are subject to insignificant risk of changes
in value. Cash equivalents are held for the purpose of meeting short-term cash commitments
rather than for investment or other similar purposes. For an investment to qualify as a cash
equivalent, it must be readily convertible into a determinable amount of cash and is subject
to an insignificant risk of changes in value. Therefore, an investment normally qualifies as a
cash equivalent only when it has a short maturity of, say, three months or less from the date
of acquisition and is virtually risk free. A short term investment in a highly risky asset will
not qualify as Cash Equivalent.
COSTING
Answer: 1
(i) Production Budget of Product 'xml' and 'yml' (monthwise in units)
April
May
June
Total
xml
yml
xml
yml
xml
yml
xml
yml
Sales
8000
6000 10000 8000 12000
9000 30000 23000
Add: Closing
stock
2500
2000
3000 2250
4000
3500
9500
7750
(25% of next
month's sale)
Less: Opening Stock
2000* 1500*
2500 2000
3000
2250
7500
5750
Production units
8500
6500 10500 8250 13000 10250 32000 25000
8|Page
MITTAL COMMERCE CLASSES
*
IPCC – MOCK TEST
Opening stock of April is the closing stock of March, which is as per company's policy
25% of next month's sale.
(ii) Production Cost Budget (for first quarter of the year)
Element of cost
Rate (Rs.)
xml
yml
(32000 units) (25000 units)
Direct Material
220
280
Direct Labour
130
120
Manufacturing Overhead
(Rs.400000÷200000×32000)
(Rs.500000÷150000×25000)
Amount (Rs.)
xml
yml
7040000
4160000
7000000
3000000
64000
11264000
83333
10083333
Answer: 2
Workings:
(a) Variable Overhead rate per unit
Difference of Overhead at two level
Difference in Production units
Rs.210000  Rs.180000
 Rs.15
=
10000 units  8000 units
=
(b) Fixed Overhead = Rs. 180000 – (8000 units × Rs.15) = Rs. 60000
(c) Standard hours per unit of production
(d) Standard Variable Overhead Rate per hour
Std. Overhead Absorption Rate
Std. Rate per hour
Rs.20
 5 hours
=
Rs.4
Variable Overhead per unit
=
Std. hour per unit
Rs.15
 Rs.3
=
5 hours
=
(e) Standard Fixed Overhead Rate per hour
(f) Actual Variable Overhead = Rs. 295000 – Rs. 62500
= Rs.4 – Rs.3 = Re.1
= Rs. 232500
(g) Actual Variable Overhead Rate per Hour
=
(h) Budgeted hours = 12000 units × 5 hours
(i) Standard Hours for Actual Production
= 60000 hours
= 15560 units × 5 hours
= 77800 hours
Rs.232500
 Rs.3.1419
74000 hours
(i) Variable Overhead Efficiency Variance:
= Std. Rate per hour (Std. Hours – Actual Hours)
= Rs.3 (77800 hours – 74000 hours)
= Rs.11400 (F)
(ii) Variable Overhead Expenditure Variance:
= Actual Hours (Std. Rate – Actual Rate)
= 74000 hours (Rs.3 – Rs.3.1419)
= Rs.10500(A)
(iii) Fixed Overhead Efficiency Variance:
= Std. Rate per Hour (Std. Hours – Actual Hours)
9|Page
MITTAL COMMERCE CLASSES
IPCC – MOCK TEST
= Rs. 1(77800 hours – 74000 hours)
= Rs.3800 (F)
(iv) Fixed Overhead Capacity Variance:
= Std. Rate per Hour (Actual Hours – Budgeted Hours)
= Rs. 1(74000 hours – 60000 hours)
= Rs.74000 – Rs.60000 = Rs.14000(F)
Answer: 3
(a)
(i)
Statement showing allocation of Joint Cost
Particulars
B1
No. of units produced
1800
Selling Price per Unit (Rs.)
40
Sales Value (Rs.)
72000
Less: Estimated Profit (B1–20% & B2–30%)
(14400)
Cost of Sales
57600
Less: Estimated Selling Expenses (B1–15% & B2–15%)
(10800)
Cost of Production
46800
Less: Cost after separation
(35000)
Joint Cost allocation
11800
(ii)
Statement of Profitability
M1 (Rs.) B1 (Rs.)
(A)
400000
72000
(4000×Rs.100)
Less: Joint Cost
175100 (212400–
11800
11800–25500)
– Cost after separation
–
35000
– Selling Expenses
80000
10800
(M1-20%, B1-15% & B2-15%)
(B)
255100
57600
Profit
(A–B)
144900
14400
Overall Profit = Rs.144900 + Rs.14400 + Rs.27000 = Rs.186300
Particulars
Sales Value
B2
3000
30
90000
(27000)
63000
(13500)
49500
(24000)
25500
B2 (Rs.)
90000
25500
24000
13500
63000
27000
(b)Escalation Clause: This clause is usually provided in the contracts as a safeguard
against any likely changes in the price or utilization of material and labour. If during the
period of execution of a contract, the prices of materials or labour rise beyond a certain
limit, the contract price will be increased by an agreed amount. Inclusion of such a term
in a contract deed is known as an 'escalation clause'.
An escalation clause usually relates to change in price of inputs, it may also be extended
to increased consumption or utilization of quantities of materials, labour etc. (where it is
beyond the control of the contractor). In such a situation the contractor has to satisfy the
contractee that the increased utilization is not due to his inefficiency.
Answer: 4
(a) Effective Machine hour for four-week period
= Total working hours – unproductive set-up time
= {(48 hours × 4 weeks) – {(4 hours × 4 weeks)}
= (192–16) hours) = 176 hours.
10 | P a g e
MITTAL COMMERCE CLASSES
IPCC – MOCK TEST
(i) Computation of cost of running one machine for a four week period
(Rs.)
(A) Standing charges (per annum)
Rent
5400.00
Heat and light
9720.00
Forman's salary
12960.00
Standing charges (per annum)
28080.00
Total expenses for one machine for four week period
(Rs.)
720.00


Rs.28080


 3 machines  13 four – week period 
(B)
Wages (48 hours × 4 weeks × Rs.20 × 3 operators) ÷ 3
machines)
Bonus
(176
hours×Rs.20×3
operators)÷3
machines)×10%
Total standing charges
Machine Expenses

Depreciation=  Rs.52000  10%

(C)

1

13 four – week period 
Repairs and maintenance (Rs.60 × 4 weeks)
Consumable stores (Rs.75×4 weeks)
Power (176 hours × 20 units × Re. 0.80)
Total machine expenses
Total expenses (A)+(B)
(ii) Machine hour rate =
3840.00
352.00
4912.00
400.00
240.00
300.00
2816.00
3756.00
8668.00
Rs.8668
 Rs.49.25
176 hours
If we assume that there are three different operators for three machines i.e. 9
operators, in that case Wages will be Rs.11520 (48 hours × 4 weeks × Rs.20 × 3
operators), Bonus will be Rs. 1056 (176 hours × Rs.20×3 operators × 10%) and
accordingly the Machine hour rate will be
Rs.17052
 Rs.96.89 .
176 hours
(b)The main advantages of Integrated Accounting are as follows:
 No need for Reconciliation: The question of reconciling costing profit and financial
profit does not arise, as there is only one figures of profit.
 Less efforts: Due to use of one set of books, there is significant saving in efforts
made.
 Less time consuming: No delay is caused in obtaining information provided in books
of original entry.
 Economical Process: It is economical also as it is based on the concept of
'Centralization of Accounting Function'.
Answer: 5
Job Costing:
It is a method of costing which is used when the work is undertaken as per the customer's
special requirement. When an inquiry is received from the customer, costs expected to be
incurred on the job are estimated and one the basis of this estimate, a price is quoted to the
customer. Actual cost of materials, labour and overheads are accumulated and on the
completion of job, these actual costs are compared with the quoted price and thus the profit
or loss on it is determined.
11 | P a g e
MITTAL COMMERCE CLASSES
IPCC – MOCK TEST
Job costing is applicable in printing press, hardware, ship-building, heavy machinery,
foundry, general engineering works, machine tools, interior decoration, repairs and other
similar work.
Batch Costing:
It is variant of job costing. Under batch costing, a lot of similar units which comprises the
batch may be used as a unit for ascertaining cost. In the case of batch costing separate cost
sheets are maintained for each batch of products by assigning a batch number. Cost per unit
in a batch is ascertained by dividing the total cost of a batch by the number of units
produced in that batch.
Such a method of costing is used in the case of pharmaceutical or drug industries readymade
garment industries, industries, manufacturing electronic parts of T.V. radio sets etc.
Answer: 6
PQR Construction Ltd.
Contract A/c
(April 1, 2009 to March 31, 2010)
Dr.
To Materials Issued
To Labour
Paid
Outstanding
To Plant Purchased
To expenses
Paid
(–) Prepaid
To Notional Profit c/d
Amount
456000
305000
24000
100000
22500
To Profit & Loss A/c
(Refer to Working Note 5)
To Work-in-Progress A/c
(Profit-in-reserve)
329000
225000
77500
437500
1525000
159263
By Plant returned to stores
(Working Note 1)
By Materials at Site
By WIP
Certified
1275000
Uncertified
40000
By Plant at Site
(Working Note No. 2)
By Notional Profit b/d
278237
437500
PQR Construction Ltd.
(April 1, 2009 to December 31, 2010)
Dr.
(For Computing estimated profit)
Amount
To Materials Issued
1270000 By Material at Site
(456000+81400)
By Plant returned to Stores on
31.03.2010
To Labour Cost
722500 By Plant returned to Stores on
31.12.2010
(Paid & Outstanding)
(Working Note 3)
305000+24000+*356000+37500)
By Cotractee A/c
To Plant purchased
225000
To expenses
(77500+197500+25000)
300000
To Estimated profit
432000
2949500
*Labour paid in 2010-11:380000–24000 = 356000
Cr.
Amount
60000
30000
1315000
120000
1525000
437500
437500
Cr.
Amount
75000
60000
102000
2712500
2949500
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MITTAL COMMERCE CLASSES
IPCC – MOCK TEST
Working Notes:
(Rs.)
1.
2.
3.
4.
5.
Value of the Plant returned to Stores on 31.03.2010
Historical Cost of the Plant returned
Less: Depreciation @ 20% of WDV for one year
75000
15000
60000
Value of Plant at Site 31.3.2010
Historical Cost of Plant at Site
Less: Depreciation @ 20% on WDV for one year
150000
30000
120000
Value of Plant returned to Stores on 31.12.2010
Value of Plant (WDV) on 31.3.2010
Less: Depreciation @ 20% of WDV for a period of 9 months
120000
18000
102000
Expenses Paid for the year 2009-10
Total expenses paid
Less: Pre-paid at the end
100000
22500
77500
Profit to be credited to Profit & Loss A/c On March 31, 2010 for the
Contract likely to be completed on December 31, 2100
Work Certified
Cash received

Total Contract Price Work Certified
1275000 1000000

 Rs.159263
= 432000 ×
2712500 1275000
= Estimated Profit ×
***
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