Somebody please let me know whether "plant returned to site" will be credited to the Contract Account or not..
1 Replies
Subhash
(None)
(122 Points)
Replied 20 December 2013
Hello, 
Think of Contract Account as a personal account.
As a contractor, when you are giving the material to the contract:
Contract account: Personal: Debit the receiver.
Material account: Asset: Credit what goes out.
- Contract Account Dr.
To, Material issued Cr.
Similarly, As a contractor, when you are getting back the material from the contract:
Material: Asset: Debit what comes in.
Contract: Personal: Credit the giver.
- Material/Plant returned to site Dr
To, Contract A/c Cr
Therefore in Contract A/c,
By, Plant returned to site. 
Regards,
Subhash.
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