Capital Wip 1r3r4d

Capital work in Progress Examples of notes to s progress are given below :

relating to capital work in

1. Cost of Fixed Assets and Capital Progress includes the following pre-operative expenses.

Work

in

31-3-______ 31-3-______

(Rs. Lacs)

(Rs. Lacs) Opening Stock of goods produced ___________

___________

Salary and Taxes. ___________

___________

Contribution to Provident and other funds. ___________

___________

Rent (Net) ___________

___________

Rates and Taxes. ___________

___________

Insurance ___________

___________

Payment to Branch Auditors : - Audit Fees. ___________

___________

- Certification Work ___________

___________

Interest on Term Loans & Debentures. ___________

___________

Interest on others ___________

___________

Miscellaneous Expenses ___________

___________

Depreciation ___________

___________

Raw Materials consumed ___________

___________

Power and Fuel ___________

___________

Excise Duty ___________

___________

Legal and Professional Fees ___________

___________

Total

___________

___________ Less : Sale of Cement Manufacturing during trail run ___________

___________

Closing Stock of Goods Purchased during trial run ___________

___________

Material Produced in Trial Run ___________

___________

2. Capital Work-in-Progress includes Rs. _______ for Delhi Project, the details of which are as follows : (a) Capital Work-in-Progress (after adjustment of Rs. ____________ being net increase due to change in the rate of exchange of the rupee and payment to Auditors -

other

matters consultancy services Rs. _________). (b)

Capital Goods in transit

(c) Advances for Capital Goods - Unsecured considered good. (d)

Stock of construction materials - value at cost

(e)

Interest on Loans

3. Addition to Fixed Assets and Capital Work in Progress include expenditure on new industrial units as follows : Year ended

Years ended

31-3-_____

31-3-______

(Rs. Lacs)

(Rs. Lacs) (i) ___________

Repairs to Buildings

___________

(ii) ___________

Salaries & Wages

___________

(iii) ___________

Contribution to Provident Fund

___________

(iv) ___________

Employee Welfare Expenses

___________

(v) ___________

Insurance

___________

(vi) ___________

Rent

___________

(vii) ___________

Rates & Taxes

___________

(viii) ___________

Miscellaneous Expenses

___________

(ix) ___________

Interest

___________ ----------------

-----------

Total

___________

___________ ----------------

-----------

4. Cost of Capital Work-in-Progress include preoperative expenses of Rs. _________ lacs consisting of Stores & Spare Parts consumed Rs. __________ lacs, Power & Water charges Rs. ________ lacs, Salaries Rs. _____________ lacks, Contribution to Provident & other Fund Rs. ________ lacs, employees Welfare expenses Rs. _________ lacs, Rent Rs. _____________lacs, Rates & Taxes Rs. ____________ lacs, Insurance Rs. _________ lacs, and Miscellaneous expenses Rs. _________ lacs. 5.

Capital Work in Progress includes : Project Expenses pending Allocations as under : (i)

Salaries & Wages (Rs.

)

(ii)

Contribution to Provident & Other Funds (Rs.

(iii)

Staff Welfare Expenses (Rs.

)

(iv)

Interest on Term Loan (Rs.

)

(v)

Depreciation

(vi)

Miscellaneous Expense

)

(Rs.

) (Rs.

)

6. As commercial production has not been commenced as at the date of this balance sheet at the Delhi Plant, certain expenditure incurred by the company as detailed in Schedule ______ which canot be regarded as part of the incidental cost of construction of buildings and plant and machinery, has been treated as deferred revenue expenditure. It is proposed that such expenditure will be written off to the future profit or loss starting from the year in which commercial production commences. These expenses have been identified as relatable to the work to be undertaken after the company commences commercial production and includes certain expenses allocated to deferred revenue expenditure on the basis of estimates made by management. 7. The Company started trial runs and trial production at its _____ Plant on _______ Commercial production has not been commenced as at the date of Balance Sheet. The expenditure incurred on the Project during the period from ________ to ________ has been included in Schedule _______ `Pre-operative and Trial Production expenditure allocated to Fixed Assets and Capital Work in Progress'. The preoperative and trial production expenditure has been allocated to Buildings, Plant and Machinery, Capital Work in Progress in the ratio of direct costs. 8. Interest amounting to Rs. _____________ on loans for capital work in progress has been capitalised during the year.

9. Commitments against capital expenditure sanctioned by the Board up to 31st March, ______ in so far as they have not been provided for in the amounted to Rs. _________. 10. Capital work in progress includes the entire interest of Rs. _________ lakhs (icluding Rs. __________ lakhs for the year) on deferred payment credits availed under ICICI re-discounting scheme for purchase of machineries. *******