Question :- Prepare Running Account Bill for the construction of school building on

contract for finished items of works as per details given below :-

Item of Rate per Quantities

Work Unit Unit upto Date in previous Bill
earth work Cu.m. Rs 500 5 --

brick work Cu.m. Rs 700 2 --

Contractor had brought 100000 bricks and 500 bags of Material X at site for use on the
work for which secured advance is paid. The assessed rate of these articles is Rs 700
per 1000 and Rs 120 per bag respectively. In the analysis of rates of work as per rates
tendered by the contractor, their cost was 750 per 1000 bricks and 100 per bag of
Material X

Advance payment of Rs. 8000 made in this bill for Brick work in cement

Following recoveries are made --------

A sum of Rs 250 is to be withheld, as he has not yet removed the surplus earth from the
site. 2.5% security was deducted & kept within the account of work. Cost of material
issued for this work (Rs. 650) is also to be recovered. Recover Income Tax @ 2%

Solution :-

Part I Account of Work Executed

payments on the basis of actual

Item of
Work
Unit Rate Quantities measurement
up-to date up-to date since previous bill

Earth work Cu. m. 500 5 2500 2500

Brick work Cu.m. 700 2 1400 1400

3900
Total value of work done (A)
Deduct value of work shown on previous bill ---------

Net value of work since previous bill (F) 3900

( figures in words)

Part II Secured Advance (Form 26-A)

Utilised
Outstanding Description
since Quantity Full Reduced upto date
in previous of Unit
previous outstanding Rate Rate advance
bill Material
Bill

------ +500 100 X bag 90 45000

----- +100000 700 Bricks -- 630 63000

Total amount of S.A. outstanding as per this account (C) 108000

Total amount of S.A. outstanding as per previous bill -----

Net amount since previous bill (E) 108000

The ​rate allowed for Secured Advance ​is ​90% of the rate assessed by Engineer-in
-charge or 90% of the material element cost in the tendered rate​, whichever is lower

​Part III Memorandum of Payments

1. Total value of work actually measured (A) 3900

2. Total up-to-date Advance Payments (B) 8000

(a) As per previous bill ……...

(b) Since previous bill … 8000 (D)

3. Total up-to date Secured Advance (C) 108000

4. Total Items (1+2+3) 119900
5. Deduct amount with-held
(a) From previous bill ……….
(b) From this bill (250+ 98) = 348 348
6. Balance (K) 119552
7. Total payment already made as per entry (K) of last bill -----
8. Payments now to be made as below
(a) By recoveries creditable to this work :
​ cost of material ….. 650
(b) By recoveries creditable to other works :
Income Tax …... 2398
119552
(c) Cheque ……..116504

* Income tax = 2% D+E+F = 2% of 119900

Pay Rs 116504 (Rs one lakh sixteen thousand five hundred four only) by cheque
Sd/Disbursing officer

G = 5(b) + 8(a) = ​348 + 650 = 998

H = 8(b) + 8(c) = ​2398 + 116504 = 118902

CHECKS :

● H-F=D+E-G
H - F = 118902- 3900 = 115002
D + E - G = 8000 + 108000 - 998 = 115002

● Payments now to be made (​Line 8​) i.e. 8(a) + 8(b) + 8(c) = ​D + E + F - 5(b)
​Line 8 = 119552
D + E + F -5(b) = 8000 + 108000 + 3900 - 348 = 119552

​Refer Book : PWD Account by S R Jairath