In this article we will discuss about the procedure for recording of costs, value and profit on contracts. Recording of Costs of a Contract: The following is the recording procedure for different costs relating to a contract: 1. Materials: Contract Account is debited with the following, relating to materials: (a) Materials specially purchased and sent to contract site. (b) Materials [...]
In this article we will discuss about the calculation of profit or loss on contracts. (a) Completed Contracts: When a contract is completed, the overall profit or loss on the contract is transferred to the profit & Loss Account fully. (b) Incomplete Contracts: When there is loss on an incomplete contract, it is fully transferred to the profit and loss [...]
In this article we will discuss about:- 1. Definition of Job and Job Costing 2. Features of Job Costing 3. Objectives 4. Essential Pre-Requisites 5. Merits 6. Demerits 7. Estimating and Its Importance 8. Procedure 9. Forms. Contents: Definition of Job and Job Costing Features of Job Costing Objectives of Job Costing Essential Pre-Requisites for Introduction of Job Costing Merits [...]