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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:
Contract No. XYZ Account
Materials b/f
x
Materials returned to store
Materials purchased
Materials c/d
Direct wages
Machinery c/d
Indirect wages
Balance c/d: Cost of work done
Subcontractors fees
Cost of special plant
Machinery/Plant b/f
Cost of work done b/d
Value of work certified
Notional Profit
Cost of work done but not certified
xx
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