Capital work in Progress Examples of notes to accounts progress are given below : relating to capital work in

1. Cost of Fixed Assets and Capital Progress includes the following pre-operative expenses. 31-3-______ (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. ___________

Work

in

31-3-______ (Rs. Lacs) ___________ ___________

___________ ___________ ___________ ___________

___________ ___________ ___________

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) (e) Stock of construction materials - value at cost Interest on Loans

3. Addition to Fixed Assets and Capital Work in Progress include expenditure on new industrial units as follows : Years ended 31-3-______ (Rs. Lacs) (i) ___________ (ii) ___________ (iii) ___________ (iv) ___________ (v) ___________ (vi) ___________ (vii) ___________ Repairs to Buildings Salaries & Wages Contribution to Provident Fund Employee Welfare Expenses Insurance Rent Rates & Taxes Year ended 31-3-_____ (Rs. Lacs)

___________ ___________ ___________ ___________ ___________ ___________ ___________

(viii) ___________ (ix) ___________ ----------___________ -----------

Miscellaneous Expenses 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) (ii) ) (iii) (iv) (v) (vi) Staff Welfare Expenses (Rs. Interest on Term Loan (Rs. Depreciation (Rs. (Rs. ) ) ) ) Salaries & Wages (Rs. )

Contribution to Provident & Other Funds (Rs.

Miscellaneous Expense

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 account 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 account 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. *******