EQS - PREPARATION OF DPR, VALUATION & ACCOUNTING.ppt

UNIT – V
PREPARATION OF DPR,
ACCOUNTING & BILLING,
VALUATION OF BUILDINGS.
Prepared By:
B. Govinda Rajulu

PROJECT ESTIMATE:
 Project means a full scheme or proposal for an undertaking a task and
may consist of several types of work along with details of each work.
A project or major scheme consists generally of the following works:
1. Preliminary investigation, Reconnaissance survey, Preliminary survey,
Location survey, Traffic survey for road projects, soil testing by trial
boring etc. as the case may be.
2. Preparation of preliminary estimate to give an idea of the cost
involved and obtaining administrative approval.
3. Detailed surveying of site or alignment by transverse surveying,
leveling, contouring, plane table surveying etc. as the case may be.
4. Plotting or drawing work, preparation of topographic map or basic
map showing the location of residential, commercial, industrial
buildings, location of sewers, water main, railway lines, existing roads,
cultivated land etc. as the case may be , preparation of longitudinal
and cross-sections for a road or canal project.
5. Selection of site or alignment on the drawing.

6. Investigation and working out the accommodation or requirement of
plinth area, number, type and sizes of buildings of various kinds in the
case of building project; width and type of road, the type and number
of cross-drainage structures for a road project; length, basin area and
capacity of canal for an irrigation project.
7. Land acquisition: Calculation for area of land to be acquired for road or
canal project, the area of Homestead and Arable land per km, and
preparation of land acquisition plan.
8. Preparation of layout plan or basic map to layout the proposed building
structures, or making formation line of road or formation line of bed of
canal and drawing cross-section of the road or canal etc.
9. Structural detailed design with design data and detailed calculations.
10. Preparation of working drawings consisting of plan, sections,
elevations and structural details.
11. Preparation of site plan or index plan for a building project and in the
case of a road or irrigation project, preparation of key map, index map,
detailed location, survey plan and longitudinal sections, detailed cross-
sections for building, Dak bungalows, rest houses etc.

12. Quantity estimate of different items of works involved in the project
from the working drawing.
13. Collecting data required for preparing estimate from sponsoring
Departments.
14. Preparation of detailed specifications for the items of works which are
not provided in the department schedule.
15. Calculations of quantities for road and irrigation works, the detailed
calculations of earthwork are attached with the project estimate and for
other type of works calculations for each item of works.
16. Preparation of detailed estimate and abstract of cost for different sub –
heads of items.
17. Preparation of general abstract of cost. This includes the name of the
project and cost of different sub – heads along with contingency, work
charges, tools and plants, operation and maintenance during
construction etc.
18. Working out the cost benefit ratio specially for irrigation project.

19. Purchase of different materials and equipments. The particulars of
quantities of different materials for the project as bricks, stone chips,
bitumen M.S. rounds, cement, spun pipe etc., and equipments
required to be purchased and supplied departmentally to contractors.
20. Accommodation of field staff: This includes temporary accommodation
of staff quarters, site offices, arrangement of water supply, sanitation,
electrification, approach road etc.
21. Project report or general report and report on estimate.
22. Bar chart – showing the phasing, the physical and financial
performance for the entire plan period of the project.

The following papers should be submitted according to the
following order as serially arranged:
i. Report
ii. Design data and calculations of design
iii. Specifications
iv. Detailed statement of measurements, quantities and rates
v. An abstract showing the total estimated cost of each item
vi. The detailed estimate in specified form and
vii. Plan and drawings.
In case of a project consisting of several works, the report may be a single
document of all works but details of measurement and abstracts of costs
should be prepared for each work, supplemented by a general abstract
bringing the whole together.
Reports on Estimates:
To write a report for a building project the various points have been by
preparation of approximate estimate. Reports on estimates should be
prepared in a lucid form, comprehensive and understandable by all non-
technical officers to give a clear picture of the whole project.

The following sub – heads should be provided in general :
1. History :
a) Particulars relating to the initiating and reasons leading up to the
proposal.
b) General necessity of the project along with reference to previous
correspondence or to the proposal.
2. Design:
a) A description of the original proposals and those finally adopted with
regard to selection of site or selection of alignment, area of land, nature
of soil, topography of the land, orientation.
b) Reference to specifications, basis of design calculations and drawings
etc.
3. Scope or provisions made:
Accommodations provided and the works that are covered and the
works that are not included in the estimates should be distinctly stated. For
a big project arrangements of labour amenities, temporary accommodation
of staff and reference to the arrangements that are being made for any
portions which are not included in the estimate should be mentioned.

4. Land :
Arrangement of land and its acquisition if necessary.
5. Rates :
Basis on which the rates have been provided, giving reference to the
standard schedule of rates of the locality or department, supporting analysis of
rates for the items which are not covered by the schedule of rates.
6. The manner for execution:
Execution of the work whether by item rate, or percentage rate or any
other type of contract or daily labour basis etc., should be mentioned.
7. Total cost:
The total cost of the project and how to be financed, return or revenue
income, if any.
8. Establishment:
Provision made for work – charged establishment and its rate.
9. Tools and Plants:
Provision made in the estimate to purchase construction plants, tools
etc., that may be necessary to execute the work with reference to specification
etc.
10. Time of Completion:
Time of starting and time of completion.

ESTIMATE FOR BUILDING PROJECT
The estimates for building projects, when submitted should be
prepared under the following heads:-
o Buildings, including filtered and un filtered water supply, sanitation,
electrification and in case of furnished building the provisions for
furniture.
o Boundary walls or fences, gateways, internal roads and paths for
different buildings, internal parks and trees connected with the garden
layout.
o Approach road out side the boundary walls of the building as may be
necessary for the layout.
o Internal layout for water supply, storm water drainage and sewerage lines
for different buildings and their connections with the out side main lines.
o Internal layout for electrical power connections, internal street lighting
and service connections out side the boundary of the compounds.

 Miscellaneous works such as levelling the ground, soil testing, surveying,
cutting trees, dismantling of old structures and other items which are not
covered under the above heads.
 special tools and plants which may be necessary in connection with the
project.
 Departmental charges, if any.
 Acquisition of land if necessary.
 Plan sanction fees of the local municipality or corporation.

ROAD PROJECT
A road project estimate essentially contains the following papers :-
i. Abstract of cost
ii. Project report
iii. General report
iv. Reconnaissance survey work report
v. Roller statement
vi. Analysis of rate
vii. Earthwork estimate
viii. Land acquisition
ix. Turfing estimate
x. Water way – chart
xi. Abstract of activities per km
xii. Bar chart
xiii. Different maps, drawings and road sections at suitable intervals of the
existing ground level and proposed formation levels
xiv. Detailed survey sheets.

i. Abstract of cost generally contains the following:-
Name of the work, Length of road and total cost. Total cost is found by adding
the following sub – heads:
a) Land acquisition cost - Rs..
b) Earthwork, Bridges and culverts - Rs..
c) Materials including work (hard crust) - Rs..
d) Ancillary works - Rs.
e) Quality control and soil survey - Rs.
f) Work charged, Contingency and T. & P. - Rs.
--------------
Total cost : - Rs .
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The abstract of cost per km.is drawn up following the abstract of activities, as in
parts, separately and are added up in a grand total column. The enhancement
of market price is anticipated for the plan period of work and an amount is
provided in the km. wise estimate. For quality control 1%, and for soil survey
work 1%, for contingency 3%, work charged 2.5%, and for tool and plant 0.5%
of the estimated cost are added.

The percentage cost for the following are shown separately at the end of
the abstract sheet.
a. Land acquisition - 10% (generally) of the estimate
b. Earthwork and Turfing - 10% (generally) of the estimate
c. Bridges and culverts - 9.5% (generally) of the estimate
d. Hard crust including
black topping surface - 70% (generally) of the estimate
e. Decorative work - 0.5% (generally) of the estimate
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Total = 100 percent
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ii. Project Report:
The following information should be provided in a project report:
a) Object and Targets : This includes the notes of the proposed
terminal road connections and connection with other roads together
with route facilities.
b) Location with reasons there for : Location of route through which
it passes and the reasons for such locations.

c) Physical aspects including broad engineering details : The
information of the waste and arable land with homestead areas affected
should be given. Particulars of crest width, crust width, curve value,
base value, the details of cross-section of the road including black
topping should be described.
d) Purchase of different materials and equipment : This should include
the particulars of the quantities of different road materials (Brick,
boulders, stone chips, bitumen, steel, cement, pipes, etc.) and
equipment required to be purchased in connection with construction of
the road.
e) Organisation aspect : The necessity of regular and work charged
establishment required to complete the project should be stated.
f) Co – ordination of the departments : The co – ordination which is
required with collector, L.A. department, local administration, P.W.D. etc.
should be stated.
g) How the cost may be met up : The state Government earning revenue
from road tax, central aid etc. as are applicable should be mentioned.
h) Facilities : Economic condition of the locality which may improve by
transporting and selling the local products. Administrative facilities and
law and order situation which may be improved should be stated.

iii. General Report ( of Estimate) :-
a. The estimated amount and the length of the road, crest and crust width
should be stated. The specification of the road crust should be stated in
details containing the following information :
1) Brick soling or brick bats consolidation thickness in different layers.
2) Width and thickness and name of materials to be used for
shouldering.
3) Thickness of over burnt brick ballast consolidation
4) Thickness of stone metal consolidation.
5) Surface dressing.
b. Reference of schedule of rates adopted to prepare the estimate
should be mentioned.
c. Reference of order under which the estimate has been prepared and
the amount put up for administrative approval and technical sanction.

iv. Reconnaissance Survey Report :-
This should include the following particulars : -
a) Name of the project for which report is drawn.
b) Authority : Office order nos. under which the survey work is made
should be mentioned.
c) Introduction : How the proposed road scheme arises, brief description
of the present condition of transport arrangement of the areas through
which the proposed road alignment passes should be stated.
d) General description : The general description of obstructions and
diversions, condition of land, conditions of soil, the structures which are
affected etc., should be stated.
e) Detailed description k m wise : The details of alignment, bridges,
culverts, canals, rivers, provision of water way, connection with other
roads, names of mouzas, diversions etc. for each km should be stated
separately.
f) Proposal : The physical character of the road proposed should be
stated.

v. Roller statement :-
The number of days required for rolling earthworks, metal
consolidation and surface dressing should be shown separately and the
total number should be drawn up.
vi. Analysis of rates :-
where the rates are not adopted from departmental rates, analysis
of rates should be drawn up.
vii. Earth work estimates :-
This is a very lengthy calculation of earthwork and is shown
separately km wise.
viii. Land acquisition :-
Calculations of areas of land km wise are shown in this statement.
The total area of homestead land km’s are also shown separately in this
statement.
ix. The area of Turfing :-
Turfing required per km to km is shown in a separate statement.

x. Water way – chart :-
The details of existing waterways, the existing waterway to be retained or
replaced, new proposals with the detailed description of the proposed waterways,
the height of bank, span etc. are shown in a separate sheet per km stating the
distance of Chainage within that km.
xi. Abstract of activities per km : -
This is a lengthy statement of all information which are involved to
construct the road and are grouped under five sub – heads with in a km length of the
road. The km wise chart of activities for the entire road length is shown in this
statement.
Part – I
1) Land acquisition :
(a) Homestead land (b) Arable land
2) Dug belling
3) Cement concrete boundary pillar
4) Jungle clearing
5) Compensation for houses & structures
(a) Pucca structures (b) Kutcha Structures

Part – II
1) Earth work ( compacted) :
(a) Ordinary earthwork (b) Muram or Soft rock ( c ) Hard rock
2) Turfing to side slopes
3) R. C. C. km post
4) R. C. C. 1/10th km post
5) Water ways :
(a) R.C.C. spun pipe culvert with single barrel, with double barrel
or triple barrel.
(b) Kutcha Structures
Part – III
1) Shouldering width and thickness with metal used on both sides.
2) (a) Boulder or brick bats consolidation or brick flat soling.
(b) 1st layer loose or consolidated thickness.
(c) 2nd layer loose or consolidated thickness
3) Thickness of metal consolidation.

Part – IV
1) Surface dressing
Part – V
1) R. C. C. direction board
2) Sign board
3) R. C. C. guard post
xii. Bar chart : -
A bar – chart showing the physical and financial performance for
the entire plan period of the project is shown in a graph.

IRRIGATION DRAINAGE PROJECT
A small irrigational drainage project generally contains the following
documents : -
i. Project or General Report
ii. Technical Notes
iii. Benefit
iv. Gauge Curve
v. Design Calculations
vi. Statement of (a) Flood damage and relief measures during the period
of inundation, (b) Flood damages and relief measures after completion
of the scheme, (c) Benefit cost Ratio.
vii. Report (of estimate)
viii. General Abstract of Cost
ix. Abstract of cost of estimate
x. List of bridges to be constructed
xi. Calculation of earthwork
xii. Analysis of rates, and
xiii. Drawings.

1. Project or General Report : -
The project report essentially should contain the following sub – heads
: -
a) Introduction : This includes the notes of the proposal, the
previous basin area and the proposed basin area.
b) Location : Locations of basins and their comparative levels and
boundary demarcations.
c) Problem : Inadequacy of drainage canal, growth of industrial
and urban areas resulting in increase of the run – off, low swamp
areas and water – logging if any resulting in less production of
khariff crops, due to prolonged water – logging, the problems of
communications, sanitary conditions etc. on the other hand
short supply of water to paddy etc. resulting in no production or
small production of paddy.
d) Solution : Construction of new canal, their length, direction,
drainage area covered and outfall connection points should be
stated in the report.

2. Technical Notes : -
This should contain the following particulars : The full drainage level (F.D.L.)
or full supply level (F.S.L.), the division of basin area on the basis of contours
and existing ridge lines of roads and railway lines should be mentioned. The
run – off index for rural area and semi – urban areas should be stated. A
stage discharge curve should be prepared giving the reference of the gauge
reading. The gauge data of the proposed sluice site at chainage should be
mentioned. Tide lockage at different points should be computed from the
respective tide curves.
3. Benefit : -
The following particulars are required under this head : (a) Benefit during
monsoon to grow more khariff by effective and (b) part benefit during post
monsoon with the water available from the channels to grow Rabi crop, full
and part benefited areas.

Fully Benefit : - Paddy = Average kg / Acre = ……. M.T.
Straw = Average kg / Acre = ……. M. T.
Partial Benefit : - Paddy = Average kg / Acre = ……. M. T.
Straw = Average kg / Acre = ……. M. T.
Total Product, Paddy in M.T. = … Straw in M.T.
Present Benefit Paddy in M.T. = … Straw in M.T.
Net extra production available from the scheme, Paddy = …… M.T.
Straw = ……. M.T.
Value of estimated additional production after completion of the scheme,
Paddy = M.T. @ Rs. …… = Rs. ……….
Straw = M.T. @ Rs. …….. = Rs. ……….
Therefore Total value of estimated additional out turn production = Rs. …
Production cost : Cost of total production (input cost) in fully benefitted
area = Rs. …………
Cost of additional production from both fully and partially benefited area of
the scheme = Rs. …….. Less 15% considered as present achievement.

Therefore Net Additional Cost for additional production = Rs. ………
Net Additional Benefit after completion of the scheme = Rs. ……….
Total Value of estimated out turn – net additional benefit = Rs. ……….
Total estimated cost Rs. ……… the project = Rs. ………
Operation and Maintenance Cost of the project @ 16% of the capital cost.
Hence, Benefit cost ratio = Net additional Benefit
Operation & Maintenance cost
This ratio must be more than one in order to get sanction of the project.
4. Gauge Curve : -
A gauge discharge curve for the canal should be drawn showing the
average high water level (Avg. H.W.L.) and (Avg. L.W.L.) at out fall sluice
site.

5. Design Calculations : -
This includes calculations of Full Drainage Level (F.D.L.) of the canal,
calculations of discharge for the canal basin drainage, design of canal etc.
6. Statement of : -
(a) Flood Damages : This includes statement of flood damages and relief
measures during the period of inundation in connection with the canal i.e.
the average loss per year in Rupees.
(b) Flood damages and Relief Measures after completion of
the Scheme : This is a statement of value of damage to crops
and houses in Rupees after completion of the scheme.
Benefit Cost Ratio = Annual Benefit of the proposed scheme in Rupees
Operation & Maintenance Cost (Usually 16% of the capital)
This ratio must be more than one in order to get sanction of the scheme.

7. Report : -
This is a report written on the estimate and includes a statement of
basin area, necessity of the estimate, utilisation of spoil earth,
construction of necessary bridges, rates followed, total cost and how to
be financed.
8. General Abstract of Cost : -
This includes the name of the scheme and cost of different sub – heads
are added up as shown below. The detailed cost of each sub – head is
not shown in the abstract of cost.
(a) Preliminary expences - - = Rs. ………..
(b) Land - - = Rs. ………..
(c) Regulator - - = Rs. ………..
(d) Cross – Drainage - - = Rs. ………..
(e) Bridges - - = Rs. ………..
(f) Buildings - - = Rs. ………..
(g) earth work - - = Rs. ………..
(h) Tools and Plant - - = Rs. ………..

Total - - = Rs. …………..
(i) Maintenance during construction @ 1% of all except land = Rs. …
(j) Contingency @ 3% on all items except land = Rs. …
(k) W.C. establishment @ 1.5 on all items except land = Rs. …
Grand Total = Rs. ……………
9. Abstract of Cost of Estimate : -
The cost under each sub – head from the general abstract of cost is
detailed in the abstract of cost as stated below.
(a) Preliminary expenses :
(i) Cost of survey works
(ii) Construction and fixing B.M. and C.S. pillars
(b) Land : Cost of land to be acquired to construct the canal
including spoil bank.
(c) Regulator : Construction of regulator

(d) Cross drainage Structure :
(i) Construction of pipe inlets
(ii) Construction of pipe outlets
(iii) Construction of inlet sluice.
(e) Bridges :
(i) Construction of pucca road bridges
(ii) Reconstruction of pucca bridges
(iii) Construction of foot bridges
(iv) Dismantling of old dilapidated regulator if any.
(f) Buildings :
(i) Construction of operator sheds for sluices including cost of
land.
(ii) Construction of quarters for gauge readers
(iii) Construction and remodeling of Bungalow.
(g) Earthwork in excavation in making embankment etc.

10) List of Bridges to be Constructed : -
The list of bridges to be constructed or reconstructed in connection with the
project should be given in a statement showing the location of the bridges,
their types, total span of bridges required etc.
11. Calculation of earth work : -
The detailed calculations of earth work should be shown separately for pre –
work and post – work.
12. Analysis of Rates : -
When rates of all items of works are adopted from the departmental schedule,
analysis of rates for those items are not required. But in case of non – schedule
items of works supporting analysis of rates are given in a separate sheet.
13. Drawings : -
Detailed drawing for Index map of the basin; Contour map of the canal basin
area; Cross section of the canal at regular intervals; Long section of the canal
from out fall chainage to 0.00 chainage; Land acquisition plans and all other
drawings in connection with the scheme are submitted.

VALUATION OF BUILDINGS
INTRODUCTION:
 The concept of valuation has its origin centuries ago.
 Valuation is the process of ascertaining the fair price or value of
property at a specified time.
 The valuation of a property is arrived after judicious processing of
facts and formulae and indication that can suggest the value or fair
price of property.
 The valuation of property is greatly varied with time.
Necessity of Valuation:
The subject valuation was first restricted to land acquisition,
when some property required to be acquired by the government for
public purposes, was appropriated and compensation paid to the owner.
Since almost all the banks are advancing loans against property
on regular loan basis, the valuation of property is essentially needed for
advancing loans on property.

At present valuation of property is mostly needed to give valuation of
immovable properties, for the following purposes.
1. For security of loans and mortgages.
2. For sale and purchase purposes.
3. For taxation purpose.
4. For VISA purpose.
5. For Rent fixation.
6. For insurance purposes.
7. For fixing court fee stamp.
8. For paying compensation, in case of compulsory acquisition.
9. For rehabilitating the people.
10. For release of loan installments as and when the construction of
building is going on.
11. For high lighting the various assets and liabilities.
12. To assess the value of work done by the builder / contractor for
affecting payments.

Factors that affect valuation:
1. Forces on demand and supply.
2. Rise in population.
3. Cost of production.
4. Rent restriction act.
5. Improvement on public schemes.
6. Purpose of purchase.
7. Imposition of control of prices of building materials.
8. Interest on schedule banks, or government securities.
9. Abnormal conditions like riots, war trends etc.
Cost : Price : Value.:
a) Cost : The term cost is used to indicate the actual amount incurred
in producing a commodity, which posses some value. The
expenditure or charges incurred in terms of quantitative as well as
qualitative labour and capital for the production of commodity is
termed as the cost of the commodity.

b) Price : The term price is used to indicate the cost of commodity plus
profit of the manufacturer. As labour and capital are required to
produce commodity, the manufacturer is entitled to have some
reward over and above the cost of commodity. The price of a
commodity is determined by the demand supply equations prevailing
in the market for that particular commodity as such a commodity may
be sold above or below cost of production.
c) Value : There is no exact definition for the term value. Value or
value of commodity is not inherent in itself, but is determined by what
is fetches in the open market by forces like demand and supply.
Value is a function of time, place, location and purpose. In order that
a commodity / property can have value, it must passes the essential
qualifications such as
1. It must posses utility
2. It must be scarce
3. It must be transferable or marketable

Terminology of Valuation :
1. Gross Income : - It is the total income and includes receipts, from
all sources, without deducting expenses for maintenance, taxes,
collection, loss of income, ground rent etc.
2. Out Goings : - Out goings are the expenses which are required to
maintain the building. The following are the various types of
outgoings.
a) Taxes : - These includes municipal tax, property tax, wealth tax etc. these
taxes are fixed on the basis of annual rental value of property after deducting
certain amount for annual repairs.
b) Repairs : - Any structure when put to use requires certain repairs annually.
And are carried out for reusing. Usually 10 to 15% of gross rent or 1 to 1 ½
months rent is allowed for repairs.
c) Management and collection charges : - The salaries of rent collector, lift
man, pump attendant, sweeper are to meat from these charges usually 5%
to 10% of gross rent is allowed for this purpose.
d) Sinking Fund : - The part amount of gross rent is kept aside annually as
sinking fund to accumulate the total cost of construction, when its life period
is completed.
e) Miscellaneous : - These include loss of rent, electric charges etc.

Terminology of Valuation :
3. Salvage Value : - It is the estimated value of the property at the end
of its life period, without being dismantled. The salvage value of a
building or machine may be increased by renovation or remodeling
respectively.
4. Scrap Value : - When the life of the building is over, after its utility
period, the dismantled material such as bricks, timber, steel etc., will
fetch certain amount, which is called as the scrap value. The
estimated value of scrap value is about 10% of construction cost.
The cost of dismantling and removal of unwanted material is
deducted to get net scrap value.
5. Market Value : - The local prevailing rate of a property at particular
time is called “Market Value” of that property, whenever put for sale.
The market value differ from time to time, according to demand and
supply, charges in industry, means of transport, cost of material and
labour etc.,
Capital gains is the gains made in transfer of capital asset, for a
consideration and is subjected to tax known as capital gains tax under
the income tax act and is applicable to urban land and buildings.

If the transfer is made after three years of the date of acquisition,
it is termed as long term capital gains and the tax is 20% of the gains.
The rate of capitalization depends upon the following factors:
1) Divisibility of holding
2) Ease of liquidity of the asset
3) Ease of management and transfer
4) Likely hood of capital gains
5) Nature of use of property for business, residence etc.,
6) Presence of legal hazards, eg. Rent restriction act or any other type of legal
hazards during the life time of the invested capital.
7) Presence of rent review clause.
8) Security of Capital.
9) Security in Real terms.
10) Security and Regularity of income.
For calculation capital gains a new concept has been introduced from
1993–94. The value of the asset is to be ascertained as on 1-4-1981 and such
value has to be enhanced, by the cost inflation index as notified by Government.
The mode of computation of long term capital gain in thus as follows with effect
from 1-4-1992.

Sl.No Accounting Year Cost Inflation Index
1 1 - 4 - 1981 TO 31 - 3 - 1982 100
2 1 - 4 - 1982 TO 31 - 3 - 1983 109
3 1 - 4 - 1983 TO 31 - 3 - 1984 116
4 1 - 4 - 1984 TO 31 - 3 - 1985 125
5 1 - 4 - 1985 TO 31 - 3 - 1986 133
6 1 - 4 - 1986 TO 31 - 3 - 1987 140
7 1 - 4 - 1987 TO 31 - 3 - 1988 150
8 1 - 4 - 1988 TO 31 - 3 - 1989 161
9 1 - 4 - 1989 TO 31 - 3 - 1990 172
10 1 - 4 - 1990 TO 31 - 3 - 1991 182
11 1 - 4 - 1991 TO 31 - 3 - 1992 199
12 1 - 4 - 1992 TO 31 - 3 - 1993 223
13 1 - 4 - 1993 TO 31 - 3 - 1994 244
14 1 - 4 - 1994 TO 31 - 3 - 1995 259
15 1 - 4 - 1995 TO 31 - 3 - 1996 281
16 1 - 4 - 1996 TO 31 - 3 - 1997 305
17 1 - 4 - 1997 TO 31 - 3 - 1998 331
18 1 - 4 - 1998 TO 31 - 3 - 1999 351
19 1 - 4 - 1999 TO 31 - 3 - 2000 389
20 1 - 4 - 2000 TO 31 - 3 - 2001 406
21 1 - 4 - 2001 TO 31 - 3 - 2002 426
22 1 - 4 - 2002 TO 31 - 3 - 2003 447
23 1 - 4 - 2003 TO 31 - 3 - 2004 463
24 1 - 4 - 2004 TO 31 - 3 - 2005 480
25 1 - 4 - 2005 TO 31 - 3 - 2006 497
26 1 - 4 - 2006 TO 31 - 3 - 2007 519
Cost inflation index has been notified as follows :

Example – 1 : -
A property was purchased for Rs. 3,48,000/- during 1983-84 and
it was sold for net consideration of Rs. 14,32,000/- during 1993-94.
Calculate the amount on which the capital gain has to be paid?
Solution : -
Given Data : - 1. Year of purchase of property – 1983 – 84.
2. Purchase Cost of property – Rs. 3,48,000/-
3. Sale of Year of property – 1993 – 94
4. Sold Cost of property – Rs. 14,32,000/-
Required : - The amount on which the capital gain has to be paid ?
As per the Table the cost inflation index:
For the year 1983 – 84 = 116
For the year 1993 – 94 = 244

Solution : -
Given Data :
1. cost of acquisition of flat = Rs. 35.00 lakhs
2. Year of acquisition of flat = June, 1999
3. Extra Cost spent for provision of
ward robes, shelves, etc., during the = Rs. 3.00 lakhs
same year (1999)
4. Cost of sale flat in Dec 2006 = Rs. 80.00 lakhs
Required : - Computation of capital gains?
As per the Table the cost inflation index:
For the year 1999 – 2000 = 389
For the year 2006 – 2007 = 519

Difference between Price and Value : -
There is a very thin distinction between the terms price and value:
A price indicates a fact that has already occurred in practice,
where as value indicates the estimation of a probable price of
commodity. Thus a valuer of real estates is required to estimate the
probable prices of the properties under consideration. If however he is
able to correctly analyze the facts placed before him, the estimated value
of the property will fairly resemble it price on the material date of
valuation.
In conclusion, valuation is the art or process or science
depending on the circumstances of the case, and purpose for which
valuation is needed, at a given time, place, under specified market
conditions.
DEPRECIATION : -
This is an assessment of the physical wear and tear of a building
or property or equipment and is depends upon its condition,
maintenance and made of use. Thus the value of the property or building
decreases gradually and reaches to scrap value due to depreciation after
expiry of its life period.

Depreciation may be defined as the decrease in value of
property due to wear and tear, decay, obsolescence(s) backwardness in
planning, utility of space, in adequate services change i.e. in services
and land uses etc. it represents eating away of capital with the age of the
building.
Methods of Calculating depreciation : -
a) Straight line method.
b) Constant percentage method.
c) Sinking fund method and
d) Quantity Survey method

c) Sinking Fund Method : Here the depreciation of the property is
assumed to be equal to the annual sinking fund plus the interest on
the fund for the year. If ‘R’ be the annual sinking fund and p, q , r
etc., be the interest on the sinking fund for succeeding year and ‘C’
be the original cost.

d) Quantity Survey Method : In this method, the property or structure is
studied in detail and extent of physical deteriorations worked out in
an endeavor to calculate depreciation. The correct value is assessed
after considering weightage, obsolescence wear and tear. Each and
every step of calculation involves logical thinking. Thus the principle
of this method mainly depends on concepts not on assumptions.
Book Value : -
This is the value of property shown in the account book in that
particular year. In other words, book value is the original cost minus
depreciation till that year. Book value reduces year after year and
reaches the scrap value at the end of its life period.
Rebatable Value : -
It is the net annual of property, which is obtained after deducting
the amount of yearly repairs from the gross income.

Valuation of Building :
The valuation of building depends on
i. Type of foundation, Structure & Durability.
ii. Location
iii. Shape & Size
iv. Open Court Yards
v. Height of Building
vi. Height of Plinth
vii. Thickness of Walls ( Whether load bearing or framed type)
viii. Nature of Floor, Roofs, Doors, Windows, etc.,
ix. Basic amenities like Water supply, Electricity, Drainage.
x. Its Accessibility to Schools, Colleges, Hospitals, Market, etc.,
xi. Whether property is leasehold or freehold.
Of all the above factors, the valuation of building mainly depends
on its rent. Usually ‘6%’ interest per annum of the capital cost is
taken as annual rate.

The valuation of building is obtained by working out its cost of
construction at present day rate after allowing suitable depreciation.
The present day cost is determined by the following methods:
i. Cost from Record : The quantities of various items of work are
taken from the estimate (if available) and are multiplied by their unit
rates. The P.W.D. or R & B officials will prepare data for rates of unit
item as per current schedule of rates.
ii. Cost by Detailed Measurements : If the record is not available,
the bill of quantities are prepared by taking detailed measurements.
Once the quantities arrived and the remaining procedure is as said
above.
iii. Cost by Plinth area Basis : The cost of construction is determined
by multiplying plinth area with plinth area rate. The plinth area is
obtained by multiplying length and breadth (outer dimensions of
building). In fixing plinth area rate, careful observation and
necessary enquiries are made in respect of all items of valuations
as mentioned above.

Methods of Valuations :
a) Rental Method of Valuation
b) Direct Comparison with Capital Value
c) Valuation based on profit
d) Valuation based on cost.
e) Development Method (OR) Residual Method
f) Depreciation Method.
a) Rental Method of Valuation : This method is adopted when rent
of property is known or probable rent is determined by enquires. The
valuation of property is determining from the following steps:
i. Calculate the net income after deducting the outgoings from
gross rent.
ii. Calculate the years purchase (Y.P) after adopting current
bank interest.
iii. Workout the value of property or capitalized cost of property
by multiplying net rental income by years purchase.

b) Direct Compensation with Capital Value : This method is adopted
when the data relating to rental income is not available and when
there are evidences of sale price of properties of near by locality is
available. Then the capitalised value of property is assessed by
direct comparison with the capitalised value of similar property in
that locality.
c) Valuation based Profit : This method is very much similar to rental
method of valuation and is suitable for buildings like Cinemas,
Hotels, Shops, Clubs or Amusement Parks etc., The net profit is
worked out after deductings all sorts of outgoings like taxes, and
including the interest of capital investment and also the cost of
labour rendered by owner. Then the capitalised value of property is
determined by multiplying the net profit by years purchase.
d) Valuation Based on Cost : In this method, the actual amount spent
in constructing the building or in possessing the property is taken as
basis for calculating the value of property. The depreciation and
obsolescence of property should be allowed while determining the
value of property.

e) Development Method of Valuation : This method is better suited
for the properties which are in under developed stage or partly
developed stage. When a large area of land is required to be divided
into plots after providing for roads, parks etc., this method is
adopted.
This method is also used when a building required to be
renovated by making additions, alterations or improvements. The
building or property may fetch source amount after its renovation. This
net income is multiplied with years purchase to get the capitalised value
of property.
f) Depreciation Method : According to this method, the depreciated
value of building is calculated directly with the help of the Formulae:
Where, D = Depreciated Cost
P = Cost at prevalent market rate.
P = Rate of depreciation
n = Age of building in years

Example – 4 :
An employee of a Govt. Office purchased an old building for Rs.
5,75,000/- based on cost of land as Rs. 1.75 lakhs and cost of building
as Rs. 4,00,000/-. The scrap value building is assumed to be 10%.
Considering the residual life of building as 20 years, workout the annual
sinking fund at 12% interest rate.
Solution :
Given Data : Cost of Old Building Rs. 5,75,000/-
Land Value Rs. 1,75,000/-
Cost of Building Rs. 4,00,000/-
Residual life of Building 20 Years
Annual interest i = 12% or 0.12
Scrap Value s = 10%
Required : - Annual sinking fund S = ?

ACCOUNTING & BILLING
Civil Accounting System :
o In civil system of account all the Government receipts are remitted into
the Government Treasuries .
o There are District Treasuries at each District headquarters and
treasuries at the Mandal / Tehsil headquarters.
o All receipts on behalf of the Central Government and the State
Governments are paid to the Treasuries and similarly all payments on
behalf of the Central and the State Governments are made at the
Treasury.
o The initial accounts of all receipts and payments are maintained in the
Treasury.
o The system of account all the money required are drawn from the
treasury by means of presentation of bills and all revenue, receipts are
remitted to the treasury.
o The treasury officers complete monthly accounts of all these receipts
and payments for each district and send them to the Accountant
General every month.
o From these accounts submitted, the A.G. compiles accounts of the
receipts and payments of the whole State and the Central Government.

P. W. D. Accounting System :
o The Public Works Department system of account is comprehensive and
maintained in the Divisional Office in prescribed forms.
o In the P.W.D. system the divisional officer is the primary disbursing officer of
the division, who is supplied with cheque books on district treasuries or sub
– treasuries or reserve bank of India or S.B.I.
o The divisional officer makes payments to contractors against proper bills by
issuing cheques.
o He also obtains money by presentation of cheque and keeps in his cash
chest for making petty cash payments as and when required.
o All money received as revenue are remitted to the treasury in lumpsum at
the end of each month or by parts at intervals during the month.
o Detailed accounts of all receipts and payments of money are kept in the
divisional office day – to – day.
o At the end of each month accounts are compiled and submitted direct to the
A.G.
o The P.W.D. have to execute works of all classes required for all civil
department of Government as civil works (civil buildings and roads),
irrigation works, drainage works, etc.
o The accounts of all these works should be maintained systematically and
correctly.

The general principles to be followed for P.W.D. system of accounts are:
1) All the transactions, whether income or expenditure, have to pass through
certain specified heads of accounts.
2) A certain specified rules, regulations and procedure are to be followed in the
entire accounting which lays down the responsibility on the divisional officer for
receipt, drawing and depositing money, spending of money and maintaining
accounts according to rules.
The main feature of the system of public works accounts are:
1) The Divisional Officer is the primary ‘disbursing officer’ of the division, who is
permitted to obtain by cheques on the civil treasuries or the Reserve Bank, the funds
required for all disbursements in connection with execution of work. He also collects
some of the departmental receipts of the division and pays them to treasuries or the
bank.
The transaction of Public Works Offices are grouped under the following four
heads : -
I. Expenditure heads : - Expenditure heads are for charges adjustable finally in
the account of Divisional Offices.
II. Revenue heads : - Revenue heads are for revenue receipts creditable finally to the
Government in the account of Divisional Offices.

III. Remittance heads : - Remittance heads are for receipts as well as for payments for
cash, stores of other values received from, or paid to, or on behalf of other departments
or Governments.
IV. Debit or deposit heads : - Debit or deposit heads are for certain receipts and
payments held in suspense till such time as they are cleared by payment or recovery,
as the case may be, in cash or otherwise.
The transaction under each of these groups of heads are further sub – divided for the
purpose of accounts. In the case of expenditure and Revenue heads, the main unit of
classification is known as the Major head. A major head is divided into Minor heads, and
each of minor head is further sub – divided into Detailed heads. In some cases the minor
heads are divided into Sub – heads which is again divided into detailed head.
THE MAJOR REVENUE HEADS ARE AS FOLLOWS : -
E. Multipurpose River Schemes, Irrigation and Electricity Schemes
XXXIV. Irrigation, Navigation, Embankment and Drainage Works (Commercial).
XXXV. Irrigation, Navigation, Embankment and Drainage Works(Non-Commercial).
F. Public Works (Including roads) and Schemes of Miscellaneous Public
Improvements
XXXVII. Public Works.

THE MAJOR EXPENDITURE HEADS ARE AS FOLLOWS : -
E. Multipurpose River Schemes, Irrigation and Electricity Schemes
43. Irrigation, Navigation, Embankment and Drainage Works (Commercial).
44. Irrigation, Navigation, Embankment and Drainage Works(Non-Commercial).
EE. Capital Account of Multipurpose, River Scheme, Irrigation and
Electricity Scheme within revenue Account
48. Capital outlay on Irrigation, Navigation, Embankment and Drainage Works.
FF. Capital Account of Multipurpose River Schemes, Irrigation and
Electricity Schemes out side Revenue Account
99. Capital outlay on Irrigation, navigation, embankment and drainage Works
(Commercial).
100. Capital outlay on Irrigation, navigation, embankment and drainage Works
(Non - Commercial).
F. Public Works (Including Roads), and Schemes of Miscellaneous Public
Improvements
50. Public Works.

THE MAJOR EXPENDITURE HEADS ARE AS FOLLOWS : -
FF. Capital Account of Public Works (Including Roads), and Schemes of
Miscellaneous Public Improvements outside the Revenue Account
103. Capital outlay on the Public Works.
54. Famine Relief.
Debit and Deposit heads
Remittance Heads
The details of Account Heads for all receipts and payments are given in Public Works
Account Code in Financial hand Book, Budget manual, etc. These head of accounts cannot be
changed except in case of detailed heads, which can be changed only by the Accountant General to
meet local requirements.
The minor heads and sub – heads or detailed heads of account of the major head 50
Public Works are given below as an illustration:-
Major Head . – 50 Public Works. Minor heads. – Original Works, Repairs, Establishment,
Tools and Plants, Grants-in-Aid, Suspense, etc. Sub-heads-Buildings, Communications (Roads),
Miscellaneous. Detailed Heads – Police, Education, Medical, Jails, etc.

The major and minor heads of the union of the State Government are
the same. The revenue and expenditure pertaining to the union and the State
have to be distinctly marked as ‘Central’ or ‘Provincial’ as the case may be, so as
to avoid any wrong booking.

Cash : - The term cash includes legal tender coins, notes, cheques payable on demand, remittance
transfer receipts and demand drafts. A small supply of revenue stamps ( required for a
acknowledgement of receipts) may be kept as part of the cash balance.
Government securities, deposit receipts of banks, and bonds are accepted as security
deposits but not treated as cash.
Debit and Credit : - Debit means expenditure and credit means receipts. When an amount is to
be debited to a work means that the amount is to be shown as expenditure on the work. Similarly
when an amount is to be credited to a work it means that the amount is to be shown as receipt under
the work.
Cash Book : - The transactions relating to the actual receipt and payment of cash are recorded in
a register, made of P.W.A. Form No.1 known as Cash Book. The cash book is one of the most
important record and posted and maintained correctly day-to-day in the Divisional Office and Sub-
Divisional Office.
The pages of the Cash Books are machine numbered, and each page is divided into
receipt side (left hand) and payment side (right hand). The receipt has five columns and payment side
has seven columns as shown….
FORM - 1 : Cash Book
RECEIPT SIDE PAYMENT SIDE
Date of
Receipt
No.of
Voucher or
Receipt
From
Whom
Receieved
Amount
(Cash)
Classification
of Receipts
Date of
Paymen
t
No.of
Voucher
To Whom
paid etc.
Payment
Cash
Bank or Treasury
No. of Cheque
(with no.of
cheque book)
Amount
1 2 3 4 5 6 7 8 9 10 11

Imprest : - An imprest also known as permanent Imprest is a standing advance of a fixed sum of
money to an individual to enable him to make certain classes of disbursements which may be
entrusted to his charge by the Divisional or Sub – Divisional Officer. The amount of an imprest is fixed
as low as possible to meet current expenses within the month. It must not exceed Rs. 1000.00 in any
case without the special sanction of the Government.
The amount of the imprest amount is kept in duplicate in Imprest Cash Amount – Form – 2:
having two foils as given……
The amount of imprest is entered as soon as received in red in column No.5 – total. The date and
manner of remittance, cash or cheque with cheque no. is entered in red ink column No.3-
‘Transaction’.
Receipt of Money : - When money is received by a government official on behalf of the
Government, it is at once entered in the account of cash book and a receipt in proper form (Form – 3)
is granted to the payer under the dated signature of S.D.O. or Divisional Officer. The officer satisfies
himself at the time of signing the receipt that the amount has been entered in the cash book and in
token of his check he also initials in the cash book against the entry. Receipts are in duplicate in book
form and pages are machine numbered. Duplicate copies of receipts are made by using carbon paper
of the double sided variety, so that there may be carbon impression on the reverse side of the original
receipt as well as on the observe of the duplicate, as a precaution against interpolation.
FORM - 2 : Imprest Cash Account
Month and
Date
Voucher No. Transaction
Amount of
each Payment
Total
Head of
Account
1 2 3 4 5 6

Note : These above two portions are in practice, printed on separate sheets
which are so bound that by using carbon paper impression may be obtained on
the lower sheet.

POWER OF SANCTION
The power of sanction of some main items are as given below : -
1. To accord technical sanction to estimates for works. – (i) C.E. – Full power; (ii) S.E. – up to Rs. 1 Crore;
(iii) E.E. – up to Rs. 40 lakhs.
2. To accept tenders of sanctioned work. – (i) C.E. – Full power; (ii) S.E. – Full power; (iii) E.E. – up to Rs.
40 lakhs; (iv) A.E. – up to Rs. 2 lakhs.
3. To accord technical sanction for special repairs. – (i) S.E. – Full power; (ii) E.E. – up to 2.5 lakhs for each
estimate.
4. To sanction excess expenditure on work – (i) C.E. – 7.5% to 15% in each case; (ii) S.E. – 5% to 7.5% in
each case; (iii) E.E. – up to 5% in each case.
5. To advertise for tender and to sanction expenditure on such advertisement. – E.E. – Full power.
6. To sanction imprest to permanent or temporary overseers. – E.E. – up to Rs. 10,000/-.
7. To divert provision for contingencies to meet cost of any work not provided for in the estimates. – S.E. –
Full power; E.E. – up to Rs. 25,000/-.
8. To transfer savings from one work to another within sanctioned estimate. – S.E. – Full power.
9. To sanction payment in March for work done in that month. – C.E. – Full power.
10. To approve schedule of rates in each district. – S.E. – Full power.
11. To alert the time limit and to remit or reduce the penalty provided in all agreements or contracts entered
into by officers sub – ordinate to them. – C.E., S.E. and E.E. – Full power for respective cases.
12. Agreement relating to the loan of tools and plants to contractors and others – E.E. – Full power.

13. To sanction the purchase of stores required for the construction of works. – (i) S.E. – Full power; (ii) E.E.
– Within the limit of sanctioned scale.
14. To sanction the purchase of tools and plants and necessary estimates thereof. – (i) C.E. – Full power; (ii)
S.E. – up to Rs. 1 lakh; (iii) E.E. – up to Rs. 20,000/-.
15. To sanction cutting of green or dried trees by public auction. – (i) S.E. – Full power; (ii) E.E. – up to Rs.
10,000/-.
16. To allocate stock limit within the total fixed by Government according to requirements. – C.E. – Full
power.
17. To sanction hiring out of tools and plants to contractors. – (i) C.E. – Full power.
18. To declare any store (stock, tools and plant materials at site) as surplus or unserviceable and sanction their
sale by public auction. – (i) C.E. – Full power; (ii) S.E. – up to Rs. 50,000/-; (iii) E.E. – up to Rs. 5000/-.
19. To sanction write – off the value of all classes of stores lost destroyed or damaged by negligence, accident
or fraud. – (i) C.E. – up to Rs. 10 lakhs; (ii) S.E. – up to Rs. 1 lakh; (iii) E.E. – up to Rs. 10,000/-.
20. To sanction write – off of the return of tools and plants when their full value has been recovered. – S.D.O.
and A.E. – Full power.
21. To sanction write – off of the Measurement Book and lost Receipt Book. – C.E. – Full power.
22. To sanction or estimate for repairs and carriage of tools and plants. – (i) S.E. – Full power; (ii) E.E. – up to
Rs. 10,000/-.
23. To sanction payment of commission to Auctioners when their payment is considered to be essential. –
Head of office at the rate 5 % of the gross sales.
24. To accord Administrative approval to famine relief project. – (i) C.E. – Full power; (ii) S.E. – up to Rs. 1
Crore; (iii) E.E. – up to Rs. 40 lakhs.

Stages of Supervision Work of Construction
The work of construction should be supervised by S.D.O. and Executive Engineer at different stages. The
contractor should give at least 7 days notice to the E.E at the following stages….
i. When the foundation trenches have been dug and before laying concrete.
ii. When foundation concrete is laid and before masonry is started.
iii. When D.P.C. has been laid and before masonry is started.
iv. When lintel is laid and before masonry above lintel is started.
v. When roof level is reached and when roof is laid.
vi. When the work has been completed.
Assistant engineer should be present during construction of important work as R.C.C. work. Steel
reinforcement should be checked before concreting started.
Contractor shall, if so required, dismantle and rebuild free of charge any portion of work carried out in such
a way as to obstruct inspection.
Example – 5 :
Prepare a first running bill of a contractor for the construction of a building from the following
data: -
Measurement of work done is recorded in the M.Book, and the abstract of quantities is prepared in
the M.Book. The abstract of quantities with the rates of different items is given below:-
1. Earth work excavation in foundation - 35 cu m @ Rs. 1600 /- per % cu m
2. Lime Concrete in foundation - 14 cu m @ Rs. 1030 /- per cu m
3. R.C.C. work 1:2:4 excluding steel but
including centering and shuttering - 4 cu m @ Rs. 4900 /- per cu m
4. 2.5 cm C.C. 1 : 1 ½ : 3 D.P.C. - 20 sq. m @ Rs. 75 /- per sq. m

5. First class B.W in 1:6 in C.M.
in foundation and plinth - 30 cu m @ Rs. 1050 /- per cu m
6. First class B.W. in lime mortar in
Super structure - 20 cu m @ Rs. 875 /- per cu m
7. Mild steel work in reinforcement - 3 q @ Rs. 20,000 /- per q
The details of materials issued to the contractor from Government stock with their issue rates are as follows:
i. Cement – 60 bags @ Rs. 250 /- per bag.
ii. 1st class Bricks – 20,000 no’s @ Rs. 2500 /- per % no’s.
iii. Mild steel bars – 3 quintals @ Rs. 14,500 /- per quintal.
10 % of the bill amount shall have to be deducted as security money.
FIRST RUNNING ACCOUNT BILL
Unit
Quantity up
to date
Items to work grouped under sub – heads Rate
Amount up
to date
% cu m 35 cu m Earth work in excavation in foundation 1600.00 560.00
Per cu m 14 cu m Lime concrete in foundation 1030.00 14,420.00
Per cu m 4 cu m
R.C.C. work 1:2:4 excluding steel but including
centering and shuttering
4900.00 19,600.00
Per sq. m 20 sq. m 2.5 cm C.C. 1 : 1 ½ : 3 Damp proof course 75.00 1500.00
Per cu m 30 cu m 1st class Brick work in C.M. 1:6 in foundation 1050.00 31,500.00
Per cu m 20 cu m 1st class B.W in lime mortar in super structure 875.00 17,500.00
Per q 3 q Mild steel work in reinforcement 20,000.00 60,000.00
Total Value of Work done 1,45,080.00

Total value of work done = Rs. 1,45,080.00
Deduct 10 % security money to be kept in deposit = Rs. 14,508.00
Net Value of Work Done = Rs. 1,30,572.00
Deduct Value of Materials issued : -
i. Cement 60 bags @ Rs. 250.00 per bag = Rs. 15,000.00
ii. 1st class Bricks 20,000 no’s @ Rs. 2,500.00 per % no’s = Rs. 50,000.00
iii. Mild steel bars 3 quintals @ Rs. 14,500.00 per quintal = Rs. 43,500.00
Total Deductions of Material Cost = Rs. 1,08,500.00
‫؞‬ Net Amount of payment to be made to the contractor = Rs. 22,072.
Example - 6 : -
Prepare a 2nd running account bill of a contractor from the following data:-
The measurements of the work done since last payment have been recorded in the
measurement book and an abstract of quantities of work done up-to-date has been
prepared in the measurement book. The abstract of quantities with their rates are as
given below:-

Item of Work
Quantity since
previous
measurement
Quantity as per
previous
measurement
Total Quantity
up-to-date
Rate in Rs.
1. Earth work in excavation
- 35 Cu m 35 Cu m 1600/-% Cu m
2. Lime Concrete in Foundation
- 14 Cu m 14 Cu m 1030/-Cu m
3. R.C.C. work 1:2:4 excluding steel
but including centering and
shuttering
7 Cu m 4 Cu m 11 Cu m 4900/- Cu m
4. 2.5 cm C.C 1:1 ½ : 3 D.P.C
- 20 sq. m 20 sq. m 75/- sq.m
5. 1st class B.W. with C.M. 1:6 in
foundation and plinth - 30 Cu m 30 Cu m 1050/- Cu m
6. 1st class B.W. in lime mortar in
super structure 35 Cu m 20 Cu m 55 Cu m 875/- Cu m
7. Mild steel work 8 q 3 q 11 q
20,000/- q
8. 2.5 cm C.C. 1:2:4 floor over and
including 7.5 cm lime concrete 50 sq. m - 50 sq. m 105/-sq.m
9. 12 mm cement plastering 1:6
250 sq. m - 250 sq. m 30/- sq. m
10. Sal wood work in chowkat
wrought framed and fixed 1.2 Cu m - 1.2 Cu m 1400/- Cu m
11. 4 cm thick teak wood paneled
shutters of doors and windows 15 sq. m - 15 sq. m 3800/- sq. m

The details of issue of materials with rates are as given below….
Materials issued Up to 1st running bill Since previous bill Rate in Rs.
Cement 60 bags 50 bags 250/- bag
1st class Brick 20000 No’s 15000 No’s 2500/- % No’s
Mild Steel Bars 3 quintals 8 quintals 14500/- quintal
Sal wood - 1.40 Cu m 600/- Cu m
Teak wood - 1.2 Cu m 1300/- Cu m
10 % had been deducted from the first running bill as security money and further 10%
shall be deducted from the 2nd running bill. Cost of materials issued up to the 1st
running bill has already been recovered and the cost of materials issued since previous
bill shall have to be recovered from the 2nd running bill.

Solution :
Unit
Quantity
up to date
Items to work grouped under sub –
heads
Rate
Amount up to
date
Since
previous Bill
in Rs.
% cu m 35 Cu m Earth work in excavation in foundation 1600.00 560.00 -
Per cu m 14 Cu m Lime concrete in foundation 1030.00 14,420.00 -
Per cu m 11 Cu m
R.C.C. work 1:2:4 excluding steel but
including centering and shuttering
4900.00 53,900.00 34,300.00
Per sq. m 20 Sq. m
2.5 cm C.C. 1 : 1 ½ : 3 Damp proof
course
75.00 1500.00 -
Per cu m 30 Cu m
1st class Brick work in C.M. 1:6 in
foundation
1050.00 31,500.00 -
Per cu m 55 Cu m
1st class B.W in lime mortar in super
structure
875.00 48,125.00 30,625.00
Per q 11 q Mild steel work in reinforcement 20,000.00 2,20,000.00 1,60,000.00
Per sq. m 50 Sq. m
2.5 cm C.C. 1:2:4 floor over and
including concrete
105.00 5,250.00 5,250.00
Per sq. m 250 Sq. m 12 mm cement plastering 1:6 30.00 7,500.00 7,500.00
Cu m 1.20 Cu m
Sal wood work in chowkat wrought
framed and fixed
1400.00 1680.00 1680.00
Per sq. m 15 Sq. m
4 cm thick teak wood paneled
shutters of doors and windows
3800.00 57,000.00 57,000.00

Total Value of Work done up – to – date. ----- Rs. 4,41,435.00
Deduct Gross value of Work done in first running Bill. ----- Rs. 1,45,080.00
Gross Amount of This Bill (Second Running Bill). ------ Rs. 2,96,355.00
Deduct 10% security money on the value of work done after first running bill (10% of
Rs. 2,96,355.00) to be kept in deposit. -------Rs. 29,635.50
Net value of Work Done up – to – date. -------- Rs. 2,66,719.50
Deduct Value of Materials issued after 1st Running Bill. ---
i. Cement 50 bags @ Rs. 250.00 per bag = Rs. 12,500.00
ii. 1st class Bricks 15,000 no’s @ Rs. 2,500.00 per % no’s = Rs. 37,500.00
iii. Mild steel bars 8 quintals @ Rs. 14,500.00 per quintal = Rs. 1,16,000.00
iv. Sal wood 1.4 Cu m @ Rs. 1400.00 per Cu m = Rs. 1,960.00
v. Teak wood 1.2 Cu m @ Rs. 3800.00 per Cu m = Rs. 4,560.00
Total Deductions of Material Cost = Rs. 1,72,520.00
‫؞‬ Net Amount of payment to be made to the contractor = Rs. 94,199.50
Say. ---------- Rs. 94,200.00

EQS - PREPARATION OF DPR, VALUATION & ACCOUNTING.ppt

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