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Help in writing Assignment AIMA PGDM Module-1 (FM!!)
Can anybody help me writing the assignment for AIMA PGDM Module-1 (FM11) Assignment.
I need answer for section-B for the following Case Study.
M/s Ramesh Builders obtained a contract to develop a colony, the contract price being Rs. 7, 00,000. Work commenced on 1st January 2006 and the expenditure incurred during the year was
Plant and tools
Stone and materials
Certain material costing Rs.28, 000 were unsuited to the contract and were sold for Rs.31, 750. A portion of the plant was scrapped and sold for Rs.13, 450.
The value of the plant and tools on the sites on 31st Decemberí2006 was Rs.19, 300 and the value of stores and materials on hand Rs.15, 100. Cash received on account was Rs.2, 20,000 representing 80% of the work certified. The cost of the work done but not certified was Rs.42, 850 and this was certified for Rs.47, 500.
a) To estimate what further expenditure would be incurred in completing the contract
b) To compute from this estimate and expenditure already incurred, the total profit that would be made on the contract and
c) To take to the credit of the profit and loss account for the year 2006 that proportion of the total which correspond to the work certified by 31st December. The estimate was as follows:
i. That the contract would be completed by 30th Septemberí2007.
ii. That the wages on the contract in 2007 which amount to Rs.1,17,250.
iii. That the cost of stores and materials required in addition to those in stock on 31st Decí2006 would be Rs.1,12,900 and that further expenses relating to contract would amount to Rs.19,000.
iv. That a further Rs.47,500 would have to be laid out on plant and tools and that residual value of the plant and tools on 30th Sepí2007 would be Rs.14,500.
v. That the establishment charges would cost the same per month as in 2006.
vi. That 2 Ĺ % of the total cost of the contract would be due to defects, temporary maintenance and contingencies.
Prepare contract account for the year ended 31st Decí2006 and show your calculations of the amount credited to the profit and loss account for the year.