Contract Accounts
It is a separate account such is maintained and opened for every contract undertaken for the reasons of accumulating cots. Every contract is given a number and all costs connecting to such particular contract are recorded in this account. A typical contract account is like displayed below as:
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Contract No. XYZ Account
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Materials b/f
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x
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Materials returned to store
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x
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Materials purchased
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x
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Materials c/d
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x
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Direct wages
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x
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Machinery c/d
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x
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Indirect wages
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x
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Balance c/d: Cost of work done
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x
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Subcontractors fees
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x
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Cost of special plant
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x
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Machinery/Plant b/f
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x
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Cost of work done b/d
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x
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Value of work certified
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x
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Notional Profit
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x
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Cost of work done but not certified
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x
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xx
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xx
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